Study On The Financing Motivation And Risks Of Shenzhen Energy REITs

As the growth of global energy demand and the problem of climate change are getting more and more attention,the demand for cleanliness of energy is getting higher and higher,and China also follows the trend to put forward the realization of the double carbon goal,and therefore introduces a series of policies to promote the energy revolution,optimize the energy structure and increase the proportion of clean energy consumption.This paper takes Shenzhen energy REITs as the research object,and briefly introduces the structure of REITs through relevant theories such as principal-agent theory and bankruptcy isolation theory of REITs.On the basis of the theory,the case profile of Shenzhen Energy’s implementation of REITs financing is introduced in conjunction with the actual situation,including its REITs issuance background,corporate profile,the situation of the underlying assets and the specific REITs structure of Shenzhen Energy.Then,the case of Shenzhen Energy REITs is analyzed in terms of financing motivation: REITs have the advantages of meeting the policy needs of the energy industry,innovative financing methods and reducing reliance on traditional liabilities.After understanding the motivation of enterprises using REITs for financing,we analyze the effects that can be achieved by enterprises using REITs for financing,taking into account the specific situation of Shenzhen Energy.The study finds that using REITs for financing can improve the market performance of enterprises,firstly,it can improve the excess return rate of enterprises and increase shareholders’ wealth,secondly,the increase of available capital can improve the total asset turnover rate of enterprises and enhance Third,it can improve the enterprise’s balance sheet ratio and optimize the financing structure.Next,qualitative and quantitative analysis of the risks that Shenzhen Energy may encounter during its operation is conducted based on its specific situation,including liquidity risk related to the fund market and revenue volatility risk related to the underlying projects.By studying the motivation and possible risks of REITs financing of Shenzhen Energy,this paper concludes that: first,under the circumstance that the financing channels of clean energy power generation industry are somewhat restricted,REITs as a new financing channel has the advantages of optimizing the capital structure and reducing the cost of capital,and can be promoted in other enterprises in the same industry.Secondly,the application of REITs in the clean energy sector still has certain risks,and high-quality underlying assets and reasonable transaction structure are the keys to reduce the risks.Therefore,in the future development of REITs,laws and regulations should be improved,and the transaction structure should be continuously optimized to help the sustainable development of enterprises and the realization of the dual carbon goal.