Sustainable construction and financing—asset-backed securitization of expressway’s usufruct with redeemable rights

Qiming Zhang; Linda Yin Nor Tjia; Biyue Wang; Aksel Ersoy

doi:10.3390/su13169113

Sustainable construction and financing—asset-backed securitization of expressway’s usufruct with redeemable rights

Qiming Zhang^*
, Linda Yin Nor Tjia
, Biyue Wang
, Aksel Ersoy

^*Corresponding author for this work

Research output: Contribution to journal › Article › Scientific › peer-review

4 Citations (Scopus)

70 Downloads (Pure)

Abstract

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.

Original language	English
Article number	9113
Number of pages	17
Journal	Sustainability
Volume	13
Issue number	16
DOIs	https://doi.org/10.3390/su13169113
Publication status	Published - 2021

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

Keywords

Asset-backed securitization
Infrastructure project
Redeemable asset-backed notes

Access to Document

10.3390/su13169113

sustainability-13-09113-v2-1Final published version, 2.09 MBLicence: CC BY

Cite this

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title = "Sustainable construction and financing—asset-backed securitization of expressway{\textquoteright}s usufruct with redeemable rights",

abstract = "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{\textquoteright}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.",

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AU - Zhang, Qiming

AU - Tjia, Linda Yin Nor

AU - Wang, Biyue

AU - Ersoy, Aksel

PY - 2021

Y1 - 2021

N2 - 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.

AB - 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.

KW - Asset-backed securitization

KW - Infrastructure project

KW - Redeemable asset-backed notes

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M3 - Article

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SN - 2071-1050

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JO - Sustainability

JF - Sustainability

IS - 16

M1 - 9113

ER -

Sustainable construction and financing—asset-backed securitization of expressway’s usufruct with redeemable rights

Abstract

UN SDGs

Keywords

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Correction to: Sustainable Construction and Financing—Asset-Backed Securitization of Expressway’s Usufruct with Redeemable Rights (Sustainability, (2021), 13, 16, (9113), 10.3390/su13169113)

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