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

Author(s)

Qiming Zhang
Linda Yin-nor Tjia
Biyue Wang
Aksel Ersoy

Detail(s)

Original language	English
Article number	9113
Journal / Publication	Sustainability
Volume	13
Issue number	16
Online published	14 Aug 2021
Publication status	Published - Aug 2021

Link(s)

DOI	DOI https://doi.org/10.3390/su13169113 Final Published version
	Check@CityULib
Attachment(s)	Documents 80712721.pdf Final Published version, 2.08 MB, PDF Publisher's Copyright Statement This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/
Link to Scopus	https://www.scopus.com/record/display.uri?eid=2-s2.0-85113745567&origin=recordpage
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(23549eaf-f2ef-4f44-b7cb-3115e7e56cf2).html

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.