Beijing Capital-Led PPP Asset Securitization Project Lists, Will Issue CNY530 Million in ABSs



(Yicai Global) May 12 -- The CITIC Securities - Beijing Capital Sewage Treatment Public-Private Partnership Project Fee-Charging Right Asset-Backed Securities (ABSs) Plan has listed on the Shanghai Stock Exchange.

Promoted by Chinese water company Beijing Capital Co. [SHA:600008], it is one of China’s first private-public partnership (PPP) asset securitization projects.

The project is expected to issue CNY530 million (USD77 million) worth of asset-backed securities, reported. Beijing Capital’s wholly-owned water company will be the original rights holder, CITIC Securities Co. [SHA:600030] will serve as the manager, and the right to charge fees for processing waste-water under the PPP projects operated by Beijing Capital’s four sewage treatment plants in eastern Shandong province will constitute the underlying assets.

The National Development and Reform Commission (NDRC) and the China Securities Regulatory Commission (CSRC) jointly published documents on PPP project asset securitization last December. As of February, municipalities and provinces had submitted 41 PPP projects for asset securitization, nine of which the NDRC selected for the first batch of PPP projects to carry out asset securitization. The roll-out of the first batch of projects aims to activate existing assets and improve liquidity of PPP projects’ assets via investment system reforms and will have a demonstration effect on the development of China’s PPP projects.

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