| Infrastructure construction plays an important role in promoting a country’s economic and social development.In the process of the continuous construction and development of China’s new urbanization society,a huge amount of money is urgently needed to invest in infrastructure construction.At present,a series of problems have been exposed in the process of supporting the construction of infrastructure projects in China,such as single financing channel,high debt pressure of local government,low participation of social capital,which restrict the development of infrastructure construction.Therefore,the introduction of effective infrastructure financing tools is imminent.Real estate investment trusts(REITs),as a new way of financing,have been widely used in China.The assets represented by commercial properties and long-term rental apartments have obtained a lot of capital integration through REITs,which strongly supports the development of the industry.In 2019,REITs was introduced into the field of infrastructure for the first time,which created a development opportunity in infrastructure construction.Based on the first REITs of infrastructure in China-Shanghai Hangzhou Ningbo Huizhou Hangzhou Expressway Asset support special plan,this paper analyzes the case from multiple perspectives.Firstly,based on the relevant theories,this paper introduces the concepts of REITs and analyzes the financing advantages of REITs.Secondly,after fully understanding the background of Expressway Financing in China,this paper introduces the Huihang Expressway REITs financing case in detail,including the participants,transaction structure and underlying assets.Furthermore,it analyzes Huihang Expressway REITs from four aspects: Project motivation,product structure,financing effect and main risks.The specific findings are as follows: Firstly,the purpose of this REITs financing is to support the national policy,revitalize the stock assets and optimize the financing structure;Secondly,the careful design of Huihang REITs in the four aspects of underlying assets,transaction structure,credit enhancement measures and tax saving measures provides an important guarantee for the issuance of the project;Thirdly,the successful implementation of Huihang high-speed REITs has brought great benefits to huhangyong company in many aspects:First of all,it has optimized the company’s financing structure,reduced the company’s financing cost and optimized the company’s balance sheet compared with other traditional financing methods.Then,it has improved the company’s market value and won the consensus of the market.Lastly,under the impact of the epidemic,it helped the company to effectively stabilize its financial situation and avoid further deterioration of its operating situation;Fourthly,Huihang high-speed REITs project in the financing process,mainly faced with cash flow risk,interest rate risk and management risk three major risks,need huhangyong company to be vigilant.Finally,based on the case of Huihang high-speed REITs,this paper summarizes the financing of China’s infrastructure enterprises using REITs.After that,the paper puts forward four enlightenments for future development: Firstly,high-quality basic assets are the basis of successful financing with REITs;Secondly,reasonable product plan is the key to successful financing of REITs;Thirdly,REITs financing can solve the limitations of enterprise financing;Fourth,REITs financing can improve corporate performance.In order to play the pioneering demonstration effect of Huihang Expressway REITs case,promote the local development and application of REITs,and further improve the financing ability of infrastructure enterprises. |
