Research On Financing Motivation And Effect Of Goldwind Perpetual Bonds

The world’s earliest recorded perpetual bond was issued by the Dutch water authority in1648,which has a history of more than 370 years.Since 370 years,the perpetual bond has been widely used in various international industries,and has accumulated a lot of experience.However,the issuance of perpetual bonds started late in China.The first perpetual bond was "13 Wuhan Subway renewable Bonds",which was officially issued in 2013.It has only been ten years since then.Perpetual bonds have dual attributes of equity and liability,which are favored by enterprises.Many enterprises choose perpetual bonds for financing.Perpetual bond financing has raised a large amount of funds for enterprises and strongly supported the development of enterprises.What is the motivation for enterprises to choose perpetual bond financing? What is the effect of perpetual bond issuance? What problems should enterprises pay attention to when issuing perpetual bonds? And so on these issues need to be studied and discussed.Therefore,the study of this paper has important practical significance and long-term significance.Based on the above considerations,this paper selects Xinjiang Goldwind Technology Co.,LTD.(referred to as Goldwind in this paper)as the research object,analyzes the motivation and effect of its perpetual bond financing,and tries to draw corresponding conclusions and suggestions.Goldwind Technology is located in the electrical equipment industry,which has a leading position in this industry,so it has an important reference role for the research on the motivation and effect of its perpetual bond financing.First of all,this paper uses case analysis as the main research method to consult and collect the relevant literature and data needed for this research through channels such as CNKI,Orient Wealth and China Bond Information Network.After that,the case of perpetual bond financing of Goldwind is taken as the research object,and the publicly disclosed information of Goldwind and other searchable public information are taken as data sources to sort out the basic information of Goldwind and related information of perpetual bond financing.After that,the author analyzed the motivation of Goldwind’s perpetual bond financing,the financial indicators before and after financing,and the market reaction when the perpetual bond was issued.In addition,the author also compares the common stock financing,general bond financing and perpetual bond financing to analyze the effect of perpetual bond financing.After an in-depth analysis of the motivation and effect of Goldwind’s sustainable financing,the author believes that the motivation of Goldwind’s sustainable bond financing includes making up for corporate cash flow,locking up corporate long-term funds,broadening corporate financing channels and stabilizing corporate credit rating.Goldwind Technology’s perpetual bond financing has improved the solvency of the enterprise,and it also has certain advantages in terms of income,cost and risk.However,investors’ reactions need to be considered when issuing.Finally,some suggestions are provided according to the above analysis results,including: grasp the macro-environmental policy,improve the hematopoietic ability of enterprises;According to the enterprise’s own situation,choose the appropriate financing scale;Pay close attention to the timing of issuance and lower the interest rate on the issuance of perpetual bonds;Choose the use of funds rationally and protect the interests of enterprise investors.It is hoped that the above suggestions can provide some help to enterprises choosing perpetual debt financing.