Analysis On The Motivation And Effect Of Longyuan Power Group Issuing Green Bonds

As the science,technology and economic level grows,environmental problems arise,and people have realized the importance of green development.As a kind of clean energy,the utilization of wind energy is important to deal with global energy shortage and climate change.The scale of wind power projects has increased the funding gap of wind enterprises.If the wind industry wants to grow,it needs long-term financial support which is low-cost and large.Green bond which is a financial product has the advantage of issuing cost and it is good for wind power enterprise financing.The paper firstly combs the issuance process of green bonds and relevant supporting policies.Then it introduces the situation of Longyuan Power Group and wind power industry,and analyzes the basic situation of the issuance of "17 Longyuan Green bond 01" and "18Longyuan green Bond 01".Secondly,it analyzes the external and internal causes of longyuan Electric Power Group’s issuance of green bonds.Through horizontal and vertical comparison,it is concluded that the financing cost of issuing green bonds is low.Then Longyuan power group’s financial performance and energy conservation,Jieneng and Datang new energy comparing the two companies found that green bonds have a positive effect on financial performance,and through the event method,with the market rate of the heng sheng index,explore longyuan power group in the share price changes before and after the issuance of green bonds.Issuing green bonds will also bring economic and reputational effects,opening up a new investment path for investors and contributing to China’s green development by investing the raised funds in green projects.However,issuing green bonds also brings financial risks,liquidity risks and environmental benefits risks.Finally,it summarizes the cases and provides suggestions to issuing green bonds of Longyuan Electric Power Group,and puts forward suggestions to relevant departments from four aspects: improving supervision mechanism,incentive mechanism,evaluation and certification system and building green bond information platform.