Analysis On Financing Mode Of Infrastructure Public Offering REITs

With the development of my country’s economy,the demand for financing for infrastructure is constantly increasing.In the past,my country’s traditional financing methods such as urban investment bonds,PPP,government fund revenue and non-standard financing in the field of infrastructure encountered various problems.Furthermore,the outbreak of the COVID-19 in 2020 has seriously affected our country’s real economy.How to effectively revitalize the stock assets in the infrastructure field to hedge the serious impact of the new crown epidemic on the real economy has become a top priority.In April 2020,my country officially launched the public REITs financing model in the infrastructure field to solve the financing problems in the infrastructure field and revitalize the stock assets in the infrastructure field.At the same time,infrastructure public offering REITs also respond to the country’s deleveraging and realize the requirements of light assets.However,the financing method of public REITs is the first batch issuance in my country,so the writing of this paper will give some enlightenment to other companies.This paper selects public REITs issued by sewage treatment enterprises among the first nine infrastructure public REITs for case analysis.Through the literature analysis method,we firstly sort out the financing methods in the field of infrastructure at home and abroad and the literature related to REITs.Learn about the financing methods used in the infrastructure field in the market and the application of REITs in mature foreign markets.Then,through the case analysis method,the detailed analysis of Fuguo Capital Water REITs is carried out.This article is analyzed from the aspects of motivation analysis,operation structure analysis,potential problem analysis and impact on original rights holders.Among them,the motivation analysis mainly analyzes the net cash flow of the Capital Environmental Protection Group and the financing methods it has used in the past.Through the analysis,it is found that the Capital Environmental Protection Group has a large gap in investment cash flow and a single financing method used in the past.The operation structure is analyzed from three aspects:basic assets,transaction structure and comprehensive income.The basic assets mainly analyze the permanent population,sewage treatment volume and project income of the Shenzhen project and the Hefei project.The transaction structure is compared with the transaction structure of quasi-REITs and other 8 public REITs through the comparative analysis method.The impact on the original owner is to use the comparative analysis method to analyze the financial indicators and stock price of the Capital Environmental Protection Group.Finally,relevant conclusions are drawn: Capital Environmental Protection Group’s use of public REITs for financing is required by enterprises and the country.Fuguo Capital Water REITs enriches Capital Environmental Protection Group’s financing methods and broadens the company’s financing channels;a reasonable operating structure is the success of Fuguo Capital Water REITs listing.The listing of Wells Fargo Capital Water REITs has a significant positive impact on the solvency and profitability improvement in the financial indicators of the original owner,Capital Environmental Group,as well as on the share price of Capital Environmental Group.Through the analysis of potential problems,it will give some enlightenment to other companies that participate in the public offering of REITs in future batches.This paper analyzes the potential problems of Fuguo Capital Water REITs mainly from the time of franchise operation,possible agency problems and tax-related problems when selecting basic assets.Finally,through the analysis of the key points of the successful issuance of Fukuoka Capital Water REITs and their existing problems,the relevant enterprises in the infrastructure field and other countries that allow REITs to participate in the industry are given the following enlightenment: use public REITs financing,select high-quality basic assets,design The transaction structure should be as simple as possible under the conditions of the enterprise.The enterprise should guide investors to make long-term investment,and strengthen the internal supervision of public REITs to reduce agency problems as much as possible.