Research On The Financing Motivation And Benefit Of Renewable Green Corporate Bonds

Since the Industrial Revolution,the level of productivity has increased significantly and industrialization has advanced by leaps and bounds,but the contradiction between economic development and environmental protection has become increasingly prominent.The ecological crisis has become one of the most important problems perplexing mankind,and green development has gradually become a "global consensus".China is committed to achieving emission peak by 2030 and carbon neutrality by 2060,adheres to the concept of"green water and green mountains are golden mountains and silver mountains",and promotes the comprehensive green transformation of economic society development.It is worth noting that the positive social and environmental benefits brought by green development sometimes sacrifice the short-term economic profits of participants,which frustrates the enthusiasm of market players to a certain extent.Against this backdrop,"green finance" has become an effective starting point to solve this problem.And green bonds,as an important part of the green finance framework,are naturally placed in high hopes.The central government has successively issued a series of guidance related to green bonds,and local governments have responded one after another to promote the implementation of policies to the details and encourage and guide more market players to participate in the green bond market.The funds raised by green bonds are usually used to build green projects.However,the disadvantages of large investment amount and long payback period of green projects will put certain pressure on the issuer,and also cause investors’ concern about bond default.The emergence of green renewable bond provides a new idea for enterprise green project financing.It has the characteristics of both "green bond" and "renewable bond",which not only meets the needs of green financing,but also relieves the issuer’s debt repayment pressure to a certain extent,and adapts to the demands of enterprise green project maturity matching and capital structure optimization.So,in the actual situation,what is the motivation for enterprises to issue and redeem green renewable bonds?How to arrange the specific path?And what benefits will this bring to the enterprise?In order to explore the above-mentioned issues,combined with related theories and based on the market status and policy background of green renewable bonds,this thesis selects the renewable green corporate bond publicly issued by China Suntien Green Energy in 2018 as the research object for specific case analysis,mainly including issuing motivation,redeeming motivation,application path and benefit.Finally,the following conclusions are drawn:First,the motivations for enterprises to issue green renewable bonds are mainly the high fit between the company’s business and green bonds,establishing a green image,the demand for development and expansion,reducing financing costs and asset-liability ratio.Second,the reason why enterprises do not exercise the renewal option and pay the principal and interest on time is to avoid hidden costs and maintain their reputation.Third,this thesis specifically elaborates the application path of the current green renewable bonds,starting from the design of special terms to achieve financing,raising a large amount of funds to invest in green projects,obtaining economic,social and environmental benefits,and finally paying the principal and interest on time to delist,the whole process is supervised and certified by professional third-party authority,and enterprises also disclose relevant information.Fourth,whether issuing or redeeming bonds,it will bring many benefits,including reducing asset-liability ratio,obtaining government subsidies,raising stock price,improving issuance efficiency,establishing a good corporate image,and certain social and environmental benefits.Last,based on the above analysis,this thesis puts forward suggestions from three levels:enterprises,investors and governments.With the help of the case of "G18 新 Y1",this thesis combines "green bond" and"renewable bond",deeply analyzes the motivations,paths and benefits of financing such innovative financial instruments,and enriches the relevant literature in the field of green bonds to a certain extent.In addition,the flexibility of term selection and the beautification of financial statements of green renewable bonds make the research have strong practical significance,and provide a reference for the development of green bond in China.