Research On Application Of Project Revenue Bonds In The Field Of Infrastructure Construction

In recent years,faced with the new task of supply-side reform under the new normal economic conditions in the new era,China has proposed to create a grand vision of a series of Infrastructure construction projects which connected not only domestic cities but also overseas countries through the "Belt and Road Initiatives" International Cooperation Summit and the "BRICS Summit".In 2013,the State Council issued the Opinions on Strengthening Infrastructure Construction in Cities,proposing to promote economic restructuring,change development methods,boost investment and consumption growth,and expand employment by accelerating the construction of infrastructure.The promotion of infrastructure projects is of great significance to the completion of an overall well-to-do society by 2020.The financing of infrastructure projects is undoubtedly the core issue supporting the project.In order to effectively solve the problem of financing difficulties for infrastructure construction projects,actively explore new financing modes in infrastructure projects,and make capital markets effectively serve the real economy,China began to explore the issue of project revenue notes in 2014,project revenue financing mode in support of infrastructure projects came into being.In 2015,in order to fill the blank of the regulatory laws on the issue of project revenue bonds,the NDRC promulgated the Interim Measures for the Administration of Project Revenue Bonds,project revenue bond officially came into being in China.Meanwhile,the Interim Measures specified that project revenue bonds should focus on supporting infrastructure construction projects.With the development of project revenue bonds in China in recent two years,more and more infrastructure construction projects chose to use the project revenue bond financing mode for project financing.Project revenue bonds use the future project revenue as an important guarantee for bond repayments,at the same time,compared to the traditional city investment bonds,the project revenue bond separate infrastructure projects with local government debt risk,emphasizing project revenue itself,and the access threshold is lower,so in recent years frequent infrastructure projects explore the project revenue bond financing mode.Since the project revenue bond only appeared in China since 2015,the development period is short and the supervising measures are not perfect,there are some problems such as unreasonable transaction structure design,the solvency cannot be guaranteed,the structure of the transaction is flawed,the credit enhancement mechanism is not perfect,and the issuance pricing is not reasonable,which lead to the approval of project revenue bond financing becoming difficult.Therefore,at present,the operability and market acceptance of infrastructure project financing by project revenue bonds are limited,and the market volume of project revenue bonds is much smaller than that of similar urban investment bonds,ABS and other financing tools' market size.In order to effectively find out the advantages and disadvantages of the project revenue bond financing mode in infrastructure construction projects,put forward some suggestions for improving,this paper introduced the "M-City Water Supply Project Revenue bond" case to analyze the specific circumstances of the infrastructure projects and the project revenue bond issuance."M-City Water Supply Project Revenue bond" obtained the NDRC issuance approval in 2017,but chose to delay issuance twice.The transaction structure of the project is relatively perfect and its solvency is guaranteed.It is universal for general project revenue bonds.However,at the same time,there are some problems in the project,such as unreasonable issue pricing and so on,as well as some common problems existing in current project bond bonds.This paper put the financing difficulties of infrastructure projects as a background,the specific theory and reality of the project revenue bonds as the research foundation.In case research,this paper explains the specific circumstances of the M-City water supply project revenue bond,and analyzes the debt paying mode and guarantee ability that investors concerned,issuance pricing that issuer concerned and transaction structure and compliance that regulatory agencies concerned.And then found out the specific advantages of the M city project revenue bond case in the debt paying mode and transaction structure.At the same time,this paper found that the main reason leading to its delayed issuance is that the high market interest rate makes it difficult for issuers to issue smoothly with the financing costs determined in the issuance plan.In the view of the advantages and disadvantages of this case,this paper puts forward some suggestions on the development of the project.The innovative financing model with outstanding advantages in project income bonds has been widely popularized and applied in infrastructure construction projects.