Research On Financing Model Of Water Assets Securitization Based On Y Company

At present,there is a big gap between the increasing funding needs of China’s water-related enterprises and the existing financing capacity that relies on indirect financing.Due to a single financing model and lack of a diversified financing structure,most water companies face financing difficulties.China’s asset securitization market ushered in the blowout period since the implementation of the filing system reform.This paper combines the idea of securitization with the operating characteristics of water-related enterprises to create an innovative financing model for water asset securitization.This financing model breaks through the financing bottleneck of water companies at this stage.This article starts with the financing status and needs of China’s water companies,analyzes the limitations of the main financing models of water companies and the difficulties that can not effectively meet their financing needs at this stage.At the same time,in view of the particularity of the water industry,it carefully analyzed the unique advantages of the financing model of water asset securitization and the feasibility of developing such models in China.On this basis,it answered why under the current situation,China’s water companies have adopted the innovative financing model of water asset securitization.Then through a typical case,combined with its financing issues,the core operating points,namely the company’s water asset securitization financing model design based on Y company depth analysis.It mainly includes transaction structure design of water asset securitization,basic asset pool construction,cash flow forecasting and restructuring,product design,repayment and interest payment arrangements,and corresponding risk safeguard measures design.And through the comparative analysis of its financing effect,it draws conclusions.Finally,it proposes corresponding solutions to the existing problems in the practice of water asset securitization.In summary,under the background of the record system reform,the financing model of water asset securitization provides a new way to solve the financing difficulties faced by China’s water enterprises and help water enterprises in China to seize the opportunities for development.For water-related enterprises,the expected financing purpose can be achieved on the basis of effectively reducing the financing costs.At the same time,the function of optimizing financial statements can be realized without increasing the scale of liabilities of the original owner and without affecting the company’s reputation.In addition,the financing model of water asset securitization innovatively realizes the use of high-quality basic assets as the cash inflow for a certain period of time in the future as bond guarantees for future repayments,giving full play to the existing advantages of water-related enterprises,pursuing advantages and avoiding harm,thus reactivating the long period construction projects with a longer recovery period.And this financing model can ease pressure on the company’s funds and supplement the liquidity funding gaps that the company will generate due to the upgrading of equipment and the expansion of its operating scale,thus helping water-related enterprises to seize market opportunities.The above advantages make this financing model promising in the current situation in China.