One, the government builds its own: as the name suggests, it uses government funds to build and operate itself.
Two, government bonds: including central government bonds and local government bonds, local government bonds include general bonds and special bonds. General bonds refers to provinces, autonomous regions, municipalities directly under the Central Government (approved by the provincial government to run their own bond issuance of the municipal government) for the public welfare projects without revenue issued, agreed to a certain period of time mainly to general public **** budget revenue debt service government bonds. Specialized bonds are government bonds issued for public welfare projects with a certain amount of revenue, and it is agreed that debt service will be made from governmental funds or special revenues corresponding to the public welfare projects within a certain period of time. In addition, for projects with both fund revenue and special revenue, if there is any surplus after repaying the principal and interest of the special bonds, market-oriented financing can be carried out, and bank loans can be applied for according to the conditions. At present, the local government special bonds in the field of infrastructure construction can be said to occupy a large proportion.
Three, platform company financing
1, debt financing
①Bank credit: bank credit is an indirect loan, divided into policy loans, general loans, special loans, the advantages of using bank loans is low cost, sufficient funds. The main disadvantage is that the bank lending prudent and strict supervision of funds, the existence of borrowing funds, interest rate changes, the national macroeconomic and industrial economic and technological policy adjustments, borrowing funds invested in the project has been a relatively large market changes that lead to the failure to repay the bank borrowing on schedule and other risk factors.
②Bonds: Bond financing refers to the enterprise through the sale of bonds to individual or institutional investors to raise working capital or capital expenditure. The issuance of bonds requires the approval of the China Securities Regulatory Commission, if the state-owned enterprises also need the approval of the State Council organs, the application procedures are more complex, the general law usually takes 3 - 6 months of operation time. Issuance of bonds can adjust the structure of corporate assets and liabilities, increase financial leverage, larger amount of financing. However, bond financing as a debt financing method, the requirement to repay the principal and interest in accordance with the agreement, the enterprise's cash flow requirements are higher, if the insolvency of the enterprise will face the danger of bankruptcy, in this sense, the enterprise bond also has a greater risk.
2, lease financing
Lease financing is usually called financial leasing, through the development and innovation, the traditional subject matter of leasing, such as equipment, machinery, etc., has been extended to other assets, such as street lights, pipe networks, etc., so as to provide enterprises with two directions of financing, one as a lessee for financial leasing, that is, the traditional leasing, and the other is the sale-and-leaseback method of financing Funds, that is, the enterprise will first sell the assets to the leasing company, and then lease back in the form of financial leasing of the emerging lease financing model.
3. Equity financing
Equity financing refers to the financing mode in which a company obtains funds for production and operation and development of the enterprise by selling or otherwise trading the shares (or stocks) of the company. The essential difference between equity financing and other financing methods is that the company's shareholding changes, the capital provider through the purchase of the company's equity and become a shareholder of the company, enjoy the rights of shareholders, shareholders obligations.
4, project financing mode
①Direct project financing.
It refers to the investors of the project directly to the domestic banks and other financial institutions to apply for loans, to obtain more than one year of credit funds, in accordance with the loan agreement by the project investor to repay the loan and interest financing directly, regardless of the success or failure of the project itself, by the project investor, to repay the project loan. This is the most common and simple way of project financing used by enterprises, usually requiring assets other than the project or third-party collateral security, the creditor has full recourse to the debt, even if the project fails, the project investor must repay the loan.
②Indirect project financing
Indirect project financing refers to the investor to set up a project company, and the project company to undertake the project financing, project construction, production and operation, product sales, repayment of principal and interest. This way is the narrow concept of project financing, generally does not include direct loans to the bank, because of its professionalism in operation and project management applicability and standardization, is a more efficient method of management.
③Product Payment
A form of financing in which the debt is repaid directly with the project product after the project is put into production, without using the cash from the sales revenue of the project product. Mainly used in oil, gas, mineral extraction, etc.. Its characteristics are: the only source used to settle debt principal and interest is the project's products, the loan repayment period should be shorter than the project's effective production period, the lender does not bear direct responsibility for the project's operating costs.
④BOT financing
BOT is "Build-Operate-Transfer", which means that the governmental department signs a concession agreement with a private enterprise (project company) for an infrastructure project and grants the contracting party's private enterprise to undertake the investment, financing, construction and operation of the project. The concession agreement grants the contracting party a private enterprise to undertake the investment, financing, construction and maintenance of the project, and within the concession period specified in the agreement, permits it to finance the construction and operation of a specific public infrastructure facility, and authorizes it to recover its investment and make a profit by charging fees to users or selling products to pay off loans. The government has the right to supervise and regulate this infrastructure, and at the end of the concession period, the private enterprise of the contracting party transfers the infrastructure to the governmental department without charge or compensation.
⑤TOT financing
TOT is "Transfer-Operate-Transfer", which usually means that the government department or state-owned enterprise transfers the property right or the operation right of a constructed project for a certain period of time to the investor for a fee, and the investor carries out the operation and management; the investor transfers the property right or the operation right to the investor in the agreed period of time. Operation and management; the investor in the agreed period of time through the operation to recover all the investment and get a reasonable return, after the expiration of the contract between the two sides, the investor will return the project to the government departments or the original enterprise of a financing method.
6 PPP financing
The cooperation mode between government departments and private enterprises refers to the concession contract in the field of public ****services, in which a government department or a local government signs a concession contract with a special-purpose company formed by the successful bidder through government procurement (the special-purpose company is generally a joint-stock company composed of the successful construction company, service operation company, or third party that invests in the project), with the special-purpose company responsible for financing, construction, and operation. The special purpose company is responsible for financing, construction and operation of the project.
Under this model, private enterprises and private capital are encouraged to cooperate with the government and participate in the construction of public **** infrastructure. Compared with BOT, the main feature of PPP in the narrow sense is that the government is more y involved in the construction, management and operation process in the middle and late stages of the project, and the enterprises are more y involved in the pre-project stages such as scientific research and project establishment. Both the government and the enterprise are involved in the whole process, and both parties cooperate for a longer period of time, and the information is more symmetrical.
⑦PFI financing
That is, the Private Finance Initiative (PFI), the meaning of which is that government departments, based on the social demand for infrastructure, put forward projects that need to be constructed, and the private sector, which has been awarded the concession, carries out the construction and operation of the public ****infrastructure projects through bidding and returns the projects operated intact and debt-free to the government at the end of the concession period (usually about 30 years), while the private sector receives the concession from the government departments and the private sector. A project financing method in which the private sector receives fees from the government or from the service recipient to recover costs.
Legal Basis
Government Investment Regulations
Article 6: Government investment funds shall be arranged on a project-by-project basis, with direct investment as the main mode; for operational projects that really need support, the main mode shall be capital injection, and the mode of investment subsidy, loan interest subsidy, and other modes may be appropriately adopted.
Arrangement of government investment funds, should be consistent with the promotion of the central and local financial authority and expenditure responsibility division of the relevant requirements of the reform, and equal treatment of all types of investment subjects, shall not set discriminatory conditions.
The State has strengthened its reserves for projects using government investment funds by establishing project banks and other means.
Article 17 The projects included in the annual plan for government investment shall meet the following conditions:
(1) If direct investment or capital injection is adopted, the feasibility study report has been approved or the investment estimate has been approved;
(2) If investment subsidies or loan interest subsidies are adopted, the procedures have been carried out in accordance with the relevant state regulations;
(C) the people's governments at or above the county level, the relevant departments of other conditions.