Case Study On REITs Financing Of Capital Water

2020 is the end of the 13 th five year plan.During the 13 th Five Year Plan period,the state’s strategic deployment for environmental protection was continuously strengthened,the overall quality of the ecological environment was improved,the phased objectives of pollution prevention and control were successfully achieved,and China’s ecological and environmental protection handed over the best report card in history.The environmental protection industry is also constantly adjusting its position in the national strategy and top-level design,from the main force of pollution prevention and control,to promoting green development,and then to participating in carbon peak and carbon neutralization.As a leading enterprise in the environmental protection industry,Capital Co.,Ltd.closely followed the national strategy.During the 14 th Five Year Plan period,it put forward the ecological + strategic plan,which should focus on asset business to drive the development of asset light business,and gradually realize the transformation of light and heavy kinetic energy.The life cycle of capital stock investment projects is generally 10-30 years.Long investment cycle and large capital scale are the key issues to be considered in supporting financing when social capital participates.In 2019,the national development and Reform Commission issued a notice to encourage relevant parties to raise capital for project investment through innovative equity financial instruments in the field of infrastructure and industries encouraged by the state.The above policies have increased the financing channels of the environmental protection industry,reduced the financing costs of enterprises and accelerated the implementation of PPP projects.As the first enterprise to finance REITs with the underlying assets of sewage treatment project,capital stock has achieved good market performance and has practical research significance.Therefore,this paper selects capital stock REITs financing as the case study object.Firstly,this paper combs the research on the development origin and application of REITs;Secondly,combined with the specific industry development and the industry status of the company,this paper introduces the operation and existing problems of capital,analyzes the reasons for the formation of its heavy assets,and points out the shortcomings of its traditional financing methods;Finally,it analyzes the application of REITs financing in detail.Specifically,according to the traditional financing status and heavy assets of capital shares,the case introduction analyzes the motivation of capital shares issuing REITs,including the demand for project funds,the need to innovate financing channels and the need to improve asset turnover rate,and then focuses on the analysis of its REITs financing process,including the selection of underlying asset projects,the design of REITs transaction structure and the rights involved by all participants Obligation agreement,income forecast analysis,investor protection mechanism and risk control in the process of operation.Finally,from the analysis of its implementation effect,the financing of capital REITs has improved its good image in the capital market.From the listing performance of capital REITs fund,the trading price of REITs fund has basically doubled from listing to now,which has been highly recognized by the capital market.At the same time,capital shares realized the equity of assets through REITs financing,which not only widened the financing channels,but also optimized its capital structure,which helped to promote its strategic transformation from emphasizing assets to neglecting assets.According to the experience of the financing application of capital stock REITs,this paper obtains the following enlightenment: a reasonable transaction structure can achieve the effect of tax optimization;The operation of REITs depends on the willingness of the original equity holders to participate.Because the original equity holders hold a large number of high-quality basic assets,but the original equity holders also face the problem of transferring the usufruct of high-quality assets in the process of REITs financing.In order to promote the development of REITs and avoid the presentation of high-quality projects of the original equity holders,supporting preferential policies are needed to give the original equity holders more attraction;The healthy development of REITs depends on high-quality bottom asset projects,and high-quality bottom asset projects need the joint efforts of all participants from the project establishment to the later project operation stage,so as to ensure the sound development of REITs.Based on the above research,this paper draws the following conclusions and prospects: REITs financing is an innovative financing method,which can effectively improve the enterprise capital structure,reduce the asset liability ratio,and improve the liquidity of heavy assets.In the future,to promote the large-scale development of REITs,we also need to provide supporting support from perfect laws and preferential tax policies..