Research On Asset Securitization Financing Of HW Expressway PPP Project

As an operation form of public infrastructure construction,PPP(Public-Private Partnership)mode is widely used in municipal engineering,transportation and other fields in China.This cooperation model not only reduces costs,but also improves efficiency,and promotes the complementary advantages of government institutions and the private sector.However,the requirements of PPP project on capital scale have raised the threshold of social capital participation and exit,and the long operation period has increased the uncertainty of investment,resulting in the gradual indifference of this model after the hot period from 2014 to 2017.Traditional financing methods are difficult to get out of the dilemma of PPP mode,which is hard to finance and has a long return on investment.Therefore,asset securitization,as a solution,has been proposed by scholars to improve the PPP operation mode and attract social capital.Starting with the financial data of HW Expressway PPP Project,this thesis discusses the problems faced by expressway PPP project during investment and construction,and analyzes the motivation,necessity and feasibility of asset securitization financing for such projects.Based on the demonstration that the basic assets of HW Project have the essential conditions for the implementation of asset securitization,the thesis calculate the expected cash flow of the basic assets.By comparing several common pricing methods,combined with the characteristics of expressway PPP project with long income period and sensitive to interest rate,and referring to the basic idea of option adjustment spread pricing,the parameters are adjusted appropriately and the theoretical value of asset-backed securities relying on HW Project is measured.Considering the factors of financing scale and duration for the asset securitization financing of such projects,this thesis designs a set of asset securitization financing mode with dual SPV structure to solve the problems of slow financing and high financing threshold in the traditional mode.Finally,this thesis analyzes the potential risks faced by HW Project in asset securitization,and puts forward corresponding countermeasures.Through the research on the financing of HW Expressway PPP Project,this thesis draws the following conclusions: Asset securitization is an effective means to solve the financing problem of expressway PPP project.The pricing method of asset securitization products of PPP project should be selected in consideration of the characteristics of the project.The option adjusted spread method is suitable for expressway projects.In the face of large-scale and long-term asset securitization financing model design,the dual SPV structure can be used as a feasible reference scheme.