Recently, King&Capital Law Firm won the bidding in the project of real estate investment trusts (REITs) in the field of infrastructure issued by Yinchuan Water Supply Assets, providing full-process consulting services for Yinchuan Water Supply Infrastructure REITs project, providing full professional support and consulting services for the Yinchuan Municipal Government to solve problems involved in the issuance of REITs such as design of water supply infrastructure asset reorganization plan, water supply operation and management, safety and security, contingency plan, determination of the use and investment of funds raised, as well as legal, financial, investment and financing issues involved in the process of promoting the project. We provided full professional support and consulting services for the Yinchuan Municipal Government to resolve the legal, financial, investment and financing issues involved in the REITs issuance, including the design of water supply infrastructure asset restructuring program, water supply operation and management, safety and security, emergency plan, determination of fund raising and investment projects, as well as the process of the project. The project was led by Liu Jingxia, senior partner and partner-in-charge of the Finance Department of the Firm, with the full support of Cheng Guang, partner, Li Junxia, Fan Litao and Wang Ying, who won the bid. The Firm will put in a professional team consisting of senior lawyers, financial advisors and professional consultants to provide high-quality and comprehensive services to Yinchuan City and guarantee professional, efficient and successful completion of the task.
Infrastructure REITs are an effective way to revitalize stock assets.2022 On May 25, 2022, the General Office of the State Council issued the Opinions on Further Revitalizing Stock Assets and Expanding Effective Investment (Guo Ban Fa [2022] No. 19), which proposes to promote the healthy development of real estate investment trusts (REITs) in the field of infrastructure and encourage more qualified infrastructure REITs to issue and list. It is clear that the focus is on revitalizing the assets of infrastructure projects with large inventory size, better current returns or greater growth potential, including transportation, water conservancy, clean energy, guaranteed rental housing, water, electricity, gas, heat and other municipal facilities, ecological and environmental protection, industrial parks, warehousing and logistics, tourism, new infrastructure, etc.; regionally, the focus is on promoting the construction of heavy construction tasks, strong demand for investment, large inventory size and good asset quality, and the local government debt ratio of the local government. good quality of assets, areas with high local government debt ratios and greater pressure on fiscal balance, as well as areas such as the ecological protection and high-quality development of the Yellow River Basin, to intensify the revitalization of stock assets, mobilize construction funds, and support the construction of new projects, so as to steadily resolve the risk of local government debt and enhance fiscal sustainability. As of the end of 2022 1, the China Securities Regulatory Commission has approved the registration of 22 single infrastructure REITs and have been issued and listed on the Shanghai and Shenzhen stock exchanges, effectively revitalizing more than 70 billion yuan of infrastructure stock assets.
The issuance of REITs in Yinchuan City can revitalize the stock of infrastructure assets. After years of investment and construction, Yinchuan City has formed a large number of stock assets in the field of infrastructure, optimizing the capital allocation of state-owned enterprises through the issuance of infrastructure public REITs, government-social capital cooperation (PPP) mode, as well as through trading and integration, tapping the value of inefficient assets, enriching the function of stock assets, exploring the promotion of organic combination of revitalization of inventory and reconstruction and expansion, and giving new value to the stock assets. It is of great significance for improving the operation and management level of infrastructure, broadening social investment channels, reasonably expanding effective investment, reducing the risk of government debt and lowering the level of corporate liabilities.
