Case Study On Credit Enhancement Methods Of TUS-SOUND's Green ABS

Environmental degradation and resource shortage have become the focus of attention of society at large.The urgency of environmental pollution prevention and resource recycling has promoted environmental protection industry development,but insufficient funding hinders its development.Due to its imperfect development and lower investment return,the domestic environmental protection industry has less attractive to investors in financing.Environmental protection enterprises with high-quality underlying assets can use Green ABS for financing.And using internal,external and informational credit enhancement methods could help them improve issuance conditions,reduce default risk,increase credit ratings,and improve financing efficiency.This article selects the “TUS-SOUND WASTE ELECTRICITY PRODUCT FUND SUBSIDY TRUST BENEFITS GREEN SPECIAL-PURPOSE PLAN” as a case to study the practical application of the Green ABS credit enhancement methods in the waste electrical and electronic product industry.This case is representative,which could show the financing environment and credit enhancement resources faced by small and medium-sized environmental protection enterprises.This case study could provide some suggestions for other small and medium environmental protection enterprises in financing.First,the article points out the current research status of Green ABS and credit enhancement methods at home and abroad,and puts forward the significance of using TUS-SOUND Green ABS case to assist in the research of Green ABS credit enhancement methods.Second,it explains the internal credit enhancement methods,external credit enhancement methods,and informational credit enhancement methods.It introduces the connotation of the information asymmetry theory,transaction cost theory,signalling theory and risk sharing theory,which related to the research issues in this article.Third,to introduce the contents of the TUS-SOUND Green ABS case from the important participants,transaction structure,fund management and credit enhancement methods.Fourth,according to the previous case introduction,using the relevant theories mentioned above to analyze the effect of the Green ABS credit enhancement methods.Fifth,to summary the successful experience of this case which tries to leave certain enlightenment for small and medium-sized environmental protection enterprises,and puts forward some suggestions to its credit enhancement methods.Finally,theconclusion section briefly summarizes the full article,and puts forward the deficiencies of this paper and the prospect of future research.Under the guidance of the theoretical foundation,the thesis suggests that the special plan can improve its credit enhancement methods by disclosing Green Certification,improving internal management capabilities,selecting professional guarantee institutions.In the case,the special plan used multiple credit enhancement methods to improve its credit rating.The successful credit enhancement experience has enlightened the small and medium-sized environmental protection enterprises to make good use of information disclosure for reducing information asymmetries in the credit enhancement process,use the advantages of basic assets to transmit good signals,use layered security structure and external guarantees to share risk,and choose flexible and appropriate credit enhancement measures to improve the credit rating and reduce financing costs.The innovation of the article is the research perspective and the research object.The research on Green ABS credit enhancement methods in TUS-SOUND Green ABS case from the perspective of credit enhancement methods,which hopes this article could enrich the research of credit enhancement system and provide guidance for practice.