The Case Study On Shougang Green Energy REITs Financing

On April 30 th,2020,the Notice on Promoting the Pilot Work of Real Estate Investment Trusts(REITs)in the Field of Infrastructure was launched,which marked the official promulgation of the REITs public policy,and a new chapter in China’s financial innovation.The Infrastructure public offering REITs launch has made the company got a new option in business development mode and financing channel,especially those companies where heavy asset accounts for a high proportion,and provided investors with a new kind of longer-term investments that possess risk to moderate and stable cash flow.In a word,it is an important milestone in the construction of Chinese multi-level capital market system.Last year,the pilot work of Infrastructure Public Offering Securities Investment Fund(abbreviated as infrastructure Public Offering REITs)was implemented,and energy power projects with typical infrastructure attributes were also included in the pilot list.REITs will be promoted and applied in the energy and power industry,which will accelerate the process of carbon peaking and carbon neutrality in China.REITs can promote the development of social capital in the field of green energy power industry.How to grasp the opportunity and meet the new financing challenges is of great significance to green energy power enterprises.Standing out among many peers,the research value of Shougang Environmental Industry Co.,Ltd.lies in that it is the first batch of pilot enterprises to use infrastructure REITs.This dissertation adopts the method of case study to deeply analyze Shougang Green Energy REITs.First of all,through the introduction to the basic information of the project and the analysis of the underlying asset and the trade structure,it is believed that the quality of the underlying assets and the reasonable deal structure is the key to launching Shougang green energy REITs successfully.Then,according to the financing motivation and the effect analysis,REITs match the financing needs of biomass enterprise.However,the risks related to the business license renewal,the subsidy income decrease or deferal and the management may cause the project’s operating income and cash flows below the expectation,which will have a negative impact on the income and market price of Shougang Green Energy REITs.Therefore,all REITs participants should always be alert to these risks.Finally,some suggestions are given to subsequent REITs for reference for the usage and development of the product in the financing of green energy power industry.The innovation of this dissertation is that the existing literature is lack about infrastructure REITs even successful pilot project of public offering REITs fund related research materials and results.This dissertation takes Shougang green energy REITs fund as the case analysis subject,which is in line with the green low carbon development theme,has particularity and typical representative,and enrich the related research results.However,the research period of the project is short and the relevant data are insufficient,so there are certain limitations.