Zhang Xin, former in-house counsel at China Construction
Bank, reviews the emergence and development of this structure
and argues that the secured loan arrangement is the core of a
The end of the millennium brought with it a boom in
Euromarket securitization. It was not only the scale of
cross-border deals that impressed, but also the more
complicated structures innovated within creative financial
sectors and investment banks.
One trend is particularly worthy of attention: the emergence
and development of project-backed securitization, which derives
from traditional asset-backed securitization techniques, but
encompasses a different market philosophy. The term
"project-backed securitization" is defined as the financial
device that securitizes cash flow streams derived from the
whole business of one project or a group of projects.
The emergence of project-backed
Traditionally, asset-backed securitization refers to the
issuance of marketable securities backed by the expected cash
flow from a pool of specific assets (eg,...