Research On The Motivation And Financing Effect Of Green Asset Securitization In Guangzhou Metro

Rapid economic development often brings damage to the ecological environment.Rail transit,because of its environmental protection and speed,helps urban development while bringing less pollution to the environment.In the process of construction and operation,metro enterprises need a lot of capital,but due to the high gearing ratio and poor profitability,metro enterprises have few financing channels and high financing costs,so they need new financing methods to supplement their capital.With the introduction of the "double carbon" target and the strong support of the state for the development of green finance,green asset securitization can help metro enterprises to obtain stable and low-cost funds.Guangzhou Metro,as a leading enterprise in the metro industry,has for the first time used the revenue rights of metro tickets as the underlying assets for green asset securitization financing.By studying the motivation,process and effects of this issuance,we can provide insights and suggestions for Guangzhou Metro and stakeholders.Taking Guangzhou Metro’s issuance of 2019-Green ABN as the research object,the financing motive,issuance process and financing effect of this issuance are studied.Firstly,based on combing the existing literature and theories,the necessity and feasibility of Guangzhou Metro’s green asset securitization are explored through the evolutionary game model.Secondly,the process,issuance plan and internal and external credit enhancement instruments of this issue are introduced.Finally,the financing effect of Guangzhou Metro’s green asset securitization is analyzed from three perspectives: economic effect,social effect and environmental effect.The study finds that Guangzhou Metro’s issuance maximizes the interests of itself,intermediaries and investors,and is feasible.In terms of economic effect,Guangzhou Metro 2019-Green ABN can improve the company’s financing efficiency and effectively reduce financing costs.In terms of social effect,the financing can improve the riding experience of passengers and provide possible reference and inspiration for other metro enterprises’ financing decisions and regulation of the green financing market.In terms of environmental effect,Guangzhou Metro contributes to the protection of ecological environment by means of technology plus management in the construction and operation process.