A Study On The Motivation And Effectiveness Of Green Asset-backed Notes Issued By New Energy Enterprises

In the 20 th report,General Secretary Xi Jinping put forward the initiative of "actively and steadily promoting carbon neutral carbon peaks",which reflects China’s firm will to actively adapt to climate change and take a green and low-carbon development path,and will also bring important changes to China’s domestic new energy industry.The process of achieving carbon neutrality requires huge amount of capital to make up for the rising cost of daily operation and the continuous investment in long-term transformation of new energy enterprises,so new energy enterprises have a large financing demand,but the actual situation of their financing is far from meeting the financing demand,which makes them often fall into financing difficulties,and they urgently need a financing tool that really plays a role in helping them.As a financial product with specific green projects,green asset-backed notes can guide and leverage more social capital into the new energy industry,further stimulate the potential of enterprises and develop the new energy market,and are an important financing tool that can provide large-scale capital supplement for the low-carbon transformation of new energy enterprises.However,in order to make the green asset-backed notes play a role in helping new energy enterprises to raise funds,the motives and effects of issuing green asset-backed notes need to be explored in depth.In this paper,21 Three Gorges New Energy ABN002 is selected as a case study to explore the motives and effects of the green asset-backed notes issued by Three Gorges New Energy Group.First,the current development and main business of Three Gorges New Energy Group is systematically analyzed,followed by a review of the issuance plan of 21 Three Gorges New Energy ABN002.Secondly,based on the aforementioned case study,the motivation for the issuance of green asset-backed notes by Three Gorges New Energy Group is explored from two perspectives: firstly,from the perspective of external policy changes and secondly,from the perspective of internal corporate development needs.Lastly,the issuance effect of 21 Three Gorges New Energy ABN002 is analyzed in three aspects: future cash flow,financial effect,and corporate value.In terms of future cash flows,the future cash flows are forecasted to determine whether the company can repay the principal on time;in terms of financial effects,the entropy value method is used to measure the comprehensive financial level based on the analysis of asset and liability structure and profitability to verify the changes in financial capability brought by the issuance of green asset-backed notes by Three Gorges New Energy Group;in terms of corporate value,the event study method is used to analyze the impact of green asset-backed notes on short-term In terms of enterprise value,the event study method was used to analyze the impact of the green asset-backed notes on the short-term share price of the company,while the EVA assessment method was used to explore the effect of the green asset-backed notes on the long-term enterprise value.This paper concludes from a case study on the issuance of green asset-backed notes by Three Gorges New Energy Group that the issuance of green asset-backed notes by Three Gorges New Energy Group can satisfy the liquidity needs of the enterprise to a certain extent,and the future cash flow can repay the principal and interest on time,while reducing the cost of corporate financing,optimizing the capital structure of the enterprise,and improving the financial level and long-term value of the enterprise,but the funds used for debt repayment may have a short-term However,the use of funds for debt service may have a negative effect on the short-term share price of the enterprise.Through analysis,this paper argues that the issuing enterprises should reasonably choose the financing mode,combine multiple financing methods if necessary,determine the issue scale suitable for their own development,and ensure the standardized and reasonable use of funds;the financial institutions should unify the green ABN certification standards and innovate green financing tools;the legal policy should improve the construction of legal supervision system and strengthen the management of public information disclosure.In view of this,the research results of this paper can provide decision guidance for new energy enterprises to select green asset-backed notes as financing tools and provide theoretical reference for relevant departments to make policies on green asset-backed notes.