Benefit And Risk Analysis Of Green Bonds Issued By Longyuan Power

Having global climate and environmental degradation,environmental problems have literally draw people’s notice,and the thought of green development is profoundly rooted in people’s thinking.With the promotion of the green economy,green bonds,as a new green financial tool,has gradually become a new choice for environmental protection related enterprises,and its market scale is gradually expanding.Based on the statistics of green bonds issued by domestic non-financial enterprises in recent five years,this paper selects 18 Longyuan green bonds 01 with the largest total issuance and relatively long term as the research object.Longyuan Power Group Co.,Ltd.,the issuer of 18 Longyuan green bonds 01,as a new energy enterprise committed to wind power generation,earlier began to respond to the national call by issuing green bonds.Therefore,this paper believes that 18 Longyuan green bond 01 is highly representative.Therefore,this paper takes 18 Longyuan green bond 01 as an example to analyze the motivation,result and potential risk.Based on the characteristics of the stateowned enterprise nature of Longyuan Power Company,the primary motivation for its issuance of green bonds is to respond to the national call and practice the national development policy with practical actions.The second motivation is to use the long term characteristics of green bonds to alleviate the problem of capital term mismatch.In terms of effect and risk,this paper mainly analyzes the positive impact of issuing green bonds on Longyuan Power from four aspects: market response,economic,environmental and social benefits,which is manifested in positive market response and positive economic,environmental and social benefits;The risk is mainly reflected in the cash flow that is difficult to guarantee,the high issuance costs and the risk of imperfect information disclosure regulations caused by the flawed development of the green bond market.In view of the above risks,this paper also projects targeted Enlightenment and proposal,mainly focusing on the policy improvement of green bonds and the guidance of investors,in order to provide more perfect green financial tools for the capital market and promote the rapid and orderly development of China’s green bond market in the future.