Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights
Asset-backed securitization will greatly promote the sustainability of infrastructure construction and financing. However, there are quite limited researches conducted in this field. Given the project characteristics of infrastructure project securities, this paper proposes the issuance steps of red...
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Online Access: | https://www.mdpi.com/2071-1050/13/16/9113 |
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doaj-140ee0bfd9b24f7aaaea84cd56a6d7f62021-08-26T14:22:06ZengMDPI AGSustainability2071-10502021-08-01139113911310.3390/su13169113Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable RightsQiming Zhang0Linda Yin-nor Tjia1Biyue Wang2Aksel Ersoy3School of Economics and Management, Beijing Jiaotong University, Beijing 100044, ChinaDepartment of Asian and International Studies, City University of Hong Kong, Hongkong 999077, ChinaArchitecture and the Built Environment, Delft University of Technology, 2600 Delft, The NetherlandsArchitecture and the Built Environment, Delft University of Technology, 2600 Delft, The NetherlandsAsset-backed securitization will greatly promote the sustainability of infrastructure construction and financing. However, there are quite limited researches conducted in this field. Given the project characteristics of infrastructure project securities, this paper proposes the issuance steps of redeemable asset-backed notes (ABN) based on the infrastructure project’s usufruct as the basic asset. Taking the expressway franchise as an example, the issuing scale and coupon rate of the redeemable ABN are determined by the expected cash flow of the expressway, the term structure of random interest rates, and the option-adjusted spread (OAS). In addition, this research analyzes the duration, convexity, and OAS.https://www.mdpi.com/2071-1050/13/16/9113asset-backed securitizationredeemable asset-backed notesinfrastructure project |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Qiming Zhang Linda Yin-nor Tjia Biyue Wang Aksel Ersoy |
spellingShingle |
Qiming Zhang Linda Yin-nor Tjia Biyue Wang Aksel Ersoy Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights Sustainability asset-backed securitization redeemable asset-backed notes infrastructure project |
author_facet |
Qiming Zhang Linda Yin-nor Tjia Biyue Wang Aksel Ersoy |
author_sort |
Qiming Zhang |
title |
Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights |
title_short |
Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights |
title_full |
Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights |
title_fullStr |
Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights |
title_full_unstemmed |
Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights |
title_sort |
sustainable construction and financing—asset-backed securitization of expressway’s usufruct with redeemable rights |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2021-08-01 |
description |
Asset-backed securitization will greatly promote the sustainability of infrastructure construction and financing. However, there are quite limited researches conducted in this field. Given the project characteristics of infrastructure project securities, this paper proposes the issuance steps of redeemable asset-backed notes (ABN) based on the infrastructure project’s usufruct as the basic asset. Taking the expressway franchise as an example, the issuing scale and coupon rate of the redeemable ABN are determined by the expected cash flow of the expressway, the term structure of random interest rates, and the option-adjusted spread (OAS). In addition, this research analyzes the duration, convexity, and OAS. |
topic |
asset-backed securitization redeemable asset-backed notes infrastructure project |
url |
https://www.mdpi.com/2071-1050/13/16/9113 |
work_keys_str_mv |
AT qimingzhang sustainableconstructionandfinancingassetbackedsecuritizationofexpresswaysusufructwithredeemablerights AT lindayinnortjia sustainableconstructionandfinancingassetbackedsecuritizationofexpresswaysusufructwithredeemablerights AT biyuewang sustainableconstructionandfinancingassetbackedsecuritizationofexpresswaysusufructwithredeemablerights AT akselersoy sustainableconstructionandfinancingassetbackedsecuritizationofexpresswaysusufructwithredeemablerights |
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1721189838286225408 |