Research On The Motivations And Benefits Of Green Exchangeable Corporate Bonds Issued By Enterprises

As one of the important financial products in the development of Green Finance in China,Green Bond is an effective financial instrument for enterprises to conduct green direct financing in the capital market.The Exchangeable Bond was first proposed in China in 2008,but it was not until 2013 that the first Exchangeable Bond was successfully issued,so far it has been only a few years.In China's securities market,both the Green Bond market and the Exchangeable Bond market are in the stage of vigorous development,both of which are emerging financing tools in the capital market.Based on the theories and research results of many scholars at home and abroad,this paper studies the “G Three Gorges EB1”,the first Green Exchangeable Bond in China issued by the Three Gorges Group.Firstly,the current Green Bond market and Exchangeable Bond market are briefly described,and the issuing subject,the target company and the issuing process of this case are introduced.Secondly,the case analysis part mainly explores the motivation of the Three Gorges Group to issue the Green Exchangeable Bond “G three gorges EB1”,as well as the benefits after issuance,and analyzes the ways in which the issuance of the Green Exchangeable Bond by the Three Gorges Group affects the corporate benefits.By analyzing the motivation of the Three Gorges Group to issue “G Three Gorges EB1”,this paper finds that: 1)at the macro level,the support of government policies;2)at the micro level,the main motivation for the Three Gorges Group to issue Green Exchangeable Bond is to alleviate the capital pressure of enterprises' green projects,reduce financing costs,obtain green reputation benefits,ease the pressure of debt repayment,and revitalize stock assets.Using comparative analysis method and event research method,this paper analyzes the issuance benefits from four aspects: corporate finance,stock market,social environment,and corporate reputation.The main conclusion is that the issuance of “G Three Gorges EB1” has reduced corporate financing costs and short-term improved market performance,brought good environmental benefits and green reputation.Finally,this paper summarizes the strategic significance of enterprises using Green Exchangeable Bond financing,and provides some countermeasures and suggestions for related enterprises,so as to promote the development of China's green economy.