Home > Authors > Zheng Lu > Feasibility Assessment Framework for Financing Public-Private Partnership Infrastructure Projects through Asset-Backed Security
Feasibility Assessment Framework for Financing Public-Private Partnership Infrastructure Projects through Asset-Backed Security
In modern days, along with restricted traditional funding sources and massive demand of infrastructure investment comes a significant gap of funding. Institutional investors are considered reliable sources of financing for infrastructure due to the long-term investment horizon and asset/liability management (ALM) requirement. Hence, institutional investors start to embrace infrastructure as an attractive asset class because infrastructure assets are able to generate long-term, stable, and predictable cash flows and diversify investors’ portfolios. As a result, financial innovations to encourage institutional investment have become an important issue. Asset-backed securitization (ABS) of Public-Private Partnership (PPP) infrastructure project’s receivables has been promoted in China since Dec. 2016 as an alternative financing instrument to encourage institutional investment to finance...
