Case Analysis Of PPP Asset Backed Securitization In Guan Industrial Park

In recent years,the level of urbanization and infrastructure construction in China has been improving.A large number of funds are often needed in the process of infrastructure construction,and it is difficult to support the huge investment in infrastructure construction by the government funds alone.This makes the PPP mode of cooperation between the government and private enterprises emerge as the times require.The PPP project of Guan Industrial Park has become the benchmarking project of the domestic PPP projects.However,the early construction of the PPP project is accompanied by a large amount of capital input from the private enterprises,and the investment recovery period is long and the construction risk is large.After the project is completed,the construction of another new project is dragged down because of the failure to recover the cost quickly.Private enterprises are in urgent need of a tool for financing.Under this background,PPP asset securitization has emerged as a new star in the asset securitization market in 2017.At present,the domestic market value of asset backed securities has exceeded 2 trillion,most of products have been relatively mature,and the products based on assets of PPP project is still in the initial stage of exploration.What are the characteristics of PPP asset backed securities,how to design them and what needs to be noticed and improved is worth studying.This paper takes the asset backed securities of Guan Industrial Park,one of the earliest four PPP asset securities in China,as a case study.From the point of view of product financing and product designing,this paper makes a thorough study and analysis of the financing motivation of CLDF,PPP project characteristics,basic assets,credit rating,value assessment and risk through case analysis.Through the study,we found the characteristics and advantages of the asset backed securities of the Guan PPP project.Also,we found that the assets of PPP project in Guan Industrial Park are very suitable for asset backed securitization.Although the cash flow of the product basic assets is not very sufficient,but the good credit rating mechanism of the product greatly improved the safety of the product.At the same time,the product is very successful in financing efficiency.CLDF get low-cost financing,and investors get good investment targets.After the analysis of the case,the article finally summarizes the problems such as the few types of basic assets,the interrelated income of each period,the insufficient coverage of the duration of the PPP project,the poor effect of the bankruptcy isolation,and so on.This paper puts forward some pertinent suggestions to these problems.This paper provides a basic idea for the research of PPP asset backed securitization,which is beneficial to the private enterprises who take part in the PPP project to get financing.It is conducive to the development of the urbanization and the construction of infrastructure in China.