Research On Application Of Project Finance For Cable Television Operators In China

The convergence of telecommunications networks, radio and television networks and internet is an important task of national development strategies. Next Generation Broadcasting (NGB) is as a strategy entry point for radio and television industry to implement convergence. In this thesis, NGB project financing is investigated. First of all, the practical application and research results of project financing at home and abroad are examined, and the theory and methods of project financing is expounded. The development of cable television networks also is investigated. Furthermore, the current status of cable television operators, the structure of their property and their current financial situation are analyzed. Taking into account the investment characteristics of NGB project, the project financing is to meet the cable television operator’s financing strategic needs. After the introduction of the concept and construction of NGB, provincial cable networks are selected as project sponsors, and the single-entity structure and two-entity structure of investment are designed. On this basis, the ’project company mode’ and ’trust fund mode’to arrange financing are designed, corresponding to the two investment structure above, respectively. At the same time BOO financing mode is selected. To design the structure of project finance, the stripped part from the existing television network as part of NGB, retained corporate profit and additional shares of listed companies are selected as equity capital sources. And commercial bank loans, issuance of corporate bonds and syndicated loans are selected as the main debt capital sources. Finally, after NGB project financing risk being qualitative analyzed, technical risk, completion risk, market risk and credit risk are considered as key risks.This thesis first proposed project financing for NGB project. To constructing NGB projects in the future, the research has certain practical significance, regardless of government departments, cable network operators, or potential investment institution, and can play a valuable role.