Case Study On Debt Financing Structure Of J Water Investment Company

The water industry is an important infrastructure industry,which is closely related to the people's life.It has the characteristics of high capital intensity,large amount of capital investment and long recovery period.Therefore,the financing of water companies need thoughtful planning.On the one hand,it is necessary to meet the demand for continuous expansion of investment in water resources due to the lack of urban water resources and serious water pollution.On the other hand,comprehensive consideration should be given to factors such as financing costs and financing term structure.In China,most of the water investment companies are not listed and they can only rely on debt financing.Therefore,it is of great practical significance to study the debt financing of water investment companies.Therefore,this paper takes J water investment company of A city as a case to study the debt financing problem of water investment company.This paper first reviews the related theories of debt financing,elaborates relevant literatures,summarizes the characteristics of investment in water industry,and analyzes the current situation of financing in water industry.Then,the paper introduces the case background of J company,summarizes the problems existing in its debt financing,and puts forward some suggestions on optimizing financing structure based on this basis by using different research methods,including using the sales percentage method to predict the financing needs of J company,and to introduce the grey linear programming model to design the specific financing plan based on the targeted analysis of the financing methods suitable for J company,and to demonstrate the feasibility of the plan.Finally,it sums up the research conclusions,and further proposes the limitations of the research conclusions and put forward the prospects for the future.The characteristic of this paper is to use the grey linear programming model and other quantitative methods to design the debt financing plan of the case company,so as to reduce the financing cost and optimize the debt structure of the case company,which is of great significance for other water investment companies with similar debt financing problems.