Research On The Financing Mode Of Green Asset-backed Securities

Since the reform and opening up,China has made great efforts to develop industry,which has not only obtained high-speed economic development,but also damaged the environment and resources.In recent years,China’s attitude towards environmental pollution and lack of resources has quietly changed,and it is urgent to put green industry on the agenda.The development of green industry can not be separated from capital.As a new green financial tool,green Asset-backed Securities(ABS)has many advantages in financing of green industry because it has the characteristics of green finance and the convenience of asset securitization.Under the background of relevant government policies,China’s green ABS market is promising.From the implementation of the green ABS policy in 2016 to the beginning of 2019,32 green ABS were issued in the bond market,with a total scale of 36.824 billion yuan.Compared with green bonds,green asset securitization products have a good development momentum in recent years,but the market scale is still small,accounting for a relatively low overall market scale.In 2018,green ABS products only accounted for 0.99% of the overall ABS market,which is still far behind compared with green bonds.In this context,this paper uses case analysis method,taking the green asset securitization as the research theme,and Guangzhou Metro Group’s first phase of green asset-backed notes(ABN)in 2019 as the object of analysis.This ABN is the first "three green" ABN with green issuing body,green capital use and green basic assets in China.It explores new feasibility and provides reference experience for real enterprises,especially rail transit industry,to expand green project financing channels by using green financial instruments.On the basis of this typical case,this paper combs and enriches the value of green asset securitization financing mode,points out the existing problems,and puts forward relevant suggestions.Firstly,this paper discusses the differences between Guangzhou Metro Green ABN and traditional financial instruments,and highlights the characteristics of "green attribute".The next step is to analyze the value of Guangzhou Metro Group from three perspectives: high qualified green enterprises,green industry SMEs and social environment.First,because the high-quality enterprises with the proportion of operating revenue of such green industries as Guangzhou Metro exceeding 50% will have a larger proportion of high-quality green basic assets,and have the potential to be certified as the main body of green issuance,these elements have a amplification effect on the value of green ABS.By comparing the changes of financial statements before and after the issuance of green ABN by Guangzhou Metro,and using the comparative analysis method to explore the financing cost,this paper analyzes the advantages of green ABS financing mode,such as activating the stock assets,optimizing the financial structure,broadening the financing channels,and saving costs to a greater extent.Second,the green asset securitization is also valuable to the small and medium-sized enterprises in the green industry.The bankruptcy isolation mechanism can reduce the financing threshold,help regulate the industrial operation of the green small and medium-sized enterprises,and improve the standardization and accuracy of the green industry investment.Thirdly,as far as the social environment is concerned,green asset securitization is conducive to the optimization of industrial structure,more environmental benefits and the improvement of green financial system.In the case of affirming the above value,this paper also explores the current shortcomings of the model.First of all,the green industry itself has the risks of single basic assets,unstable cash flow and legal compliance of the project;the relevant policies and current laws of green ABS also restrict it;due to the lack of guidance,the participation of investors is insufficient;the information disclosure in the industry is not standardized.At the end of this paper,in view of the above shortcomings,the green enterprises,government departments and financial institutions respectively put forward suggestions to improve the green ABS financing mode.It is suggested that green enterprises should strive to improve the green rating of the main body of enterprises,improve the stability of cash flow of basic assets,and deal with the compliance of basic assets.It is suggested that the government should perfect the standard system of innovative products,introduce more preferential policies,provide green ABS external credit enhancement at the legal level,and make information disclosure more strict and transparent.It is suggested that financial institutions should be deeply involved in the financing mode of green asset securitization and cultivate green investors.It is hoped that the above suggestions can promote the development of green ABS financing mode.