Securitization as an innovative refinancing mechanism and an effective asset management tool in a sustainable development environment

¹ Zhytomyr Polytechnic State University, Department of Accounting and Auditing, Zhytomyr, 10005, Ukraine
² National Technical University “Dnipro Polytechnic”, Department of Accounting and Auditing, Dnipro, 49000, Ukraine

^* Corresponding author: ivanenko2112@gmail.com

Abstract

Today’s realities dictate to Ukrainian companies a management philosophy that requires them not only to maintain their position in the market, but also to increase the efficiency of their operations and development in the context of favorable and unfavorable changes in the market environment, which necessitates significant amounts of financial resources. In the face of global competition and the increased turbulence of the external environment, securitization is one of the alternative tools to attract additional financing as well as to minimize risks by which financial markets can support sustainable finance in the transition to a green economy. The article deals with the essence of securitization as one of the major financial innovations of our time. It is established that this financial mechanism allows to diversify sources of financing, to effectively manage the structure of the balance sheet of the enterprise, as well as to significantly increase the level of liquidity of its assets. It also describes the main types of securitization and their impact on the structure of balance sheet indicators. The practical relevance of the study is that the authors’ highlighted areas of change in financial performance make it possible to make an smart decision on the use of a particular securitization mechanism, considering the purpose of its implementation and the capabilities of its initiators, including in the transition to a green economy. It is suggested for the successful implementation of the concept of a “green” economy aimed at achieving sustainable development goals in Ukraine, using such financial instrument as sustainable securitization through the use of the collateralized loan obligation mechanism.