Case Study On Green Benefit Right Of Trust Asset Securitization Of Tus-est

The case research objective of this dissertation is "TUS-EST's Waste Electric Appliance Fund Subsidy for Its Green Benefit Right of Trust Asset Securitization".Its transaction structure applies a double-layer SPV structure,combining trust and asset securitization.The company takes the trust benefit right as the asset pool,government subsidies receivable as underlying assets,and deficiency payment commitment as an external credit enhancement measure.The transaction arrangement of this programme greatly reduces its overall risks and provides certain implications for green enterprises.This dissertation analyzes the case in aspects of the issuance intention,pricing,asset pool,bankruptcy isolation system,credit enhancement measures and the effects of this asset securitization,aiming at better application of asset securitization in green industry.Based on the relevant theories of asset securitization,this dissertation utilizes case study approach to analyze the asset securitization issued by TUS-EST.In case introduction section,it first describes the basic information of the issuer-TUS-EST,followed by transaction structure,securities,asset pool and underlying assets,credit enhancement measures and issuance results of the case.Next,the case analysis section analyzes the financing motivation of this asset securitization,continued with a regression analysis establishing a model to illustrate the influencing factors of pricing for the current green asset securitization issued in China,comparing the original pricing in case and model estimating results in order to evaluate the rationality of the actual pricing.After that,advantages of the project design in risk control are analyzed in aspects of the quality of underlying asset pool,the results of bankruptcy isolation system and the effectiveness of credit enhancement measures.At last,the financial analysis method is chosen to evaluate the effects of issuance.To conclude,the implications of this dissertation include: For those green enterprises,choosing government receivables,whose stability can be examined by sensitivity analysis,works in constituting a stable underlying asset.Moreover,the double-layer SPV structure,which requires cooperation among different companies and an increase in related intermediary costs,is able to improve risk control capability.Another point,select appropriate credit enhancement measures according to the quality of basic assets and the effect of bankruptcy isolation system.Choose qualified guarantors to enhance the effectiveness of credit enhancement measures.Eventually,to prevent potential asset securitization breaches,it is recommended to establish related laws in defining SPVs' rights and status,ensuring its effectiveness.Regulators should standardize the information disclosure system with stricter requirements.Rating agencies can have their status raised to better act as supervisors.