The Research On Asset Backed Securitization Of PPP Project

The introduction of asset securitization financing methods into PPP projects has positive implications for increasing the provision of public goods,accelerating infrastructure construction,alleviating the government's financial burden,and increasing social capital participation.In December 2016,the National Development and Reform Commission and the Securities Regulatory Commission jointly issued a document supporting the asset securitization of PPP projects,thus opening up the development of asset securitization in the public infrastructure sector.The asset securitization method can provide long-term capital support for the rapid development of PPP projects,and it can also realize the refinancing of PPP projects,and convert asset-backed assets generated by PPP projects into standardized securities assets with high liquidity by issuing asset-backed securities.It not only activates existing assets,but also supports the development of the real economy more directly.For local governments,asset securitization through PPP projects can innovate public goods delivery methods,take advantage of the high efficiency,innovation,and cost control of private capital,and can reduce the leverage ratio of local governments and their financing platforms.The asset securitization of PPP projects can achieve long-term capital matching for long-term projects,solve the problem of high leverage in financial markets,resolve the risk mismatch of financial instruments,and strengthen financial capital support for the real economy.Individual investors can also invest in asset securitization products through public funds and corporate annuities to obtain long-term stable returns.The paper reads the literature,studies the theory of public goods provision,the theory of infrastructure sales,and analyzes the origin of the basic assets of the PPP project asset securitization from the source.The government adopts a franchise agreement to introduce social capital to participate in the provision of public goods.For the provision of public goods,the PPP(public-private partnership)model provides an effective financing and operating mechanism.The PPP project revenue mechanism includes three types of return mechanisms:consumer payment,government subsidies for project operating funds,and government pay-for-service purchases,making the PPP model infrastructure operating right,and possessing the principle of asset securitization.Cash flow stability,predictable requirements.Then the paper discusses the application of the asset securitization financing model in PPP projects.Through research on the design of asset securitization products,a set of generic documents has been designed based on the guidance documents of the Securities Regulatory Commission,the Exchange,and the fund industry association on asset securitization.The PPP project asset securitization plan,which is applicable to the issuance of asset securitization products for standardized PPP projects,has guiding significance for PPP project companies.Finally,through the above-mentioned theoretical research and policy analysis,combined with the Yinan County central heating PPP project,according to the actual conditions of the project,an analysis is made of the suitability of the heating fee income right as a basic asset,and the cash flow is analyzed according to the feasibility study report.For the transaction structure design,a set of viable asset securitization programs was formed and the plan was reviewed.The practical significance of the application of asset securitization in PPP projects was pointed out,and the risks encountered in the design process of the project were made.The analysis has a strong reference for future asset securitization financing of other PPP projects.