Research On The Impact Of Issuing Green Bonds On The Financial Capability Of Environmental Protection Enterprises ——The Case Of Dongjiang Environmental Protection As An Example

Standing from the beginning of the 21 st century,China’s rapid economic development,accompanied by environmental problems,results in haze,greenhouse effect,thin ozone layer and other environmental problems one after another,so environmental protection has gradually been put on the agenda of China.In order to actively respond to the Party’s call-"lucid waters and lush mountains are gold and silver mountains",China has launched green finance policie since 2015.In recent years,green finance has been welcomed by enterprises in China.As one of the important means of green finance,green bond has been issued with increasing scale and is one of the ways for many environmental enterprises to raise funds.As one of the top important members of the environmental protection industry,Dongjiang Environmental Protection seized the right opportunity to prepare for the issuance of green bonds in 2016 and successfully issued green bonds in 2017,setting an example for other environmental protection enterprises.Issuing green bonds not only promotes environmental governance,but also has an important impact on corporate financial capacity.In view of this,this paper selected Dongjiang Environmental Protection as a case company to conduct a detailed study about the impact of Dongjiang Environmental Protection’s issuance of green bonds in 2017 on its financial capacity,and explored the path of its impact.The following conclusions were found through research: First,after Dongjiang Environmental Protection issued green bonds to raise funds to invest in green projects,the green projects will produce benefits and improve the profitability of the enterprise.Second,Dongjiang Environmental Protection issued green bonds to raise funds to invest in green projects,the benefits of which are conducive to improving the company’s operating capacity.Third,Dongjiang Environmental Protection invests the funds raised by issuing green bonds in green projects,which increases its operating income and net profit and is conducive to the development capacity of the enterprise.Fourth,Dongjiang Environmental Protection issued green bonds to raise funds to repay green project loans,which can temporarily improve the of Dongjiang Environmental Protection,while the debt formed by the principal of green bonds has a negative impact on its solvency.Based on the above conclusion,we can at least draw three inspirations: First,in order to improve profitability,reduce unnecessary losses;Second,in order to improve solvency,expand financing channels;Third,in order to better promote the improvement of financial capacity,increase the ratio of operating income to net profit.