Application Research On ABS Of Infrastructure Construction

The infrastructure construction has the characteristics of long construction period, large capital needs, long investment payback period and is mainly dominated by the government. The infrastructure construction raises funds through bank loans or financial allocation but source of funds is limited. In the context of the current domestic economic downturn and local government debt crisis, infrastructure construction is short of capital, how to ensure the infrastructure construction to promote regional economic growth has become an urgent problem to be solved.Having the huge advantage to revitalize the stock, asset securitization can effectively solve the problem of capital shortage of infrastructure construction. Taking “Hengzao Expressway toll revenue right asset-backed special plan” as an example, this paper firstly introduces the present situation of infrastructure investment and financing in China, including the overview of infrastructure facilities, the characteristics of investment and financing, the existing financing methods and its limitations, in order to explain the shortage of funds in infrastructure construction. Then, the case is introduced from the aspects of transaction related parties, transaction structure, risk and prevention, and the current situation of special program operation. Moreover, this paper analyzes the case in detail from the macro background, financing motivation and financing effect in order to illustrate the necessity, feasibility and advantages of financing through asset securitization for infrastructure operators, and asset securitization will be extended to the financing process of non-operational infrastructure project. Finally, the case is summarized and policy recommendations are put forward. The conclusion is that the essence of income-right asset-backed securities is a kind of future claims, it can effectively reduce the infrastructure financing costs, but has the disadvantages of excessive concentration of risk and being unable to achieve risk isolation. In view of the obstacles to the development of asset securitization business in China, the author put forward policy recommendations to the infrastructure operators and regulatory authorities, in the hope of promoting the development of China's asset securitization business.