Research On The Issuance Effect Of The First Green Exchangeable Bond Of The China Three Gorges Group

As the second largest economy in the world,China has made outstanding achievements in green economy.After the COVID-19 pandemic,at the 75 th UN General Assembly,General Secretary Xi Jinping emphasized the "green recovery" of China’s economy.Companies actively respond to the call to develop green projects.However,a large amount of capital needs to be invested in the early stage of green project operation,and the project cycle is long.How to incorporate low-cost funds into the construction of green projects has become an important issue discussed in the financial market.During this time,the China Three Gorges Group,as a key enterprise in the hydroelectric indust,issued the first green exchangeable bonds on the market,named “G Three Gorges EB1”,both have the nature of green bonds and exchangeable bonds,is an innovation in the bond market.Incorporated low-cost and long-term funds for the development of corporate green projects,bringing new ways for green non-listed companies to raise funds.So,explore why companies choose green exchangeable bonds for financing and the effects of the issuance of green exchangeable bonds has theoretical and practical significance.First,The relevant research content of green bonds and exchangeable bonds has been sorted out from the study of domestic and foreign literature,and laid a theoretical foundation for the research of this article;Secondly,a brief introduction to the operation and financial status of the China Three Gorges Corporation and the underlying stock company,and analyzed the issuance clause setting,Green factor certification and use of raised funds of the green exchangeable bonds and the cause of bond issuance.On the basis of the above content,Conducted a detailed study on the issuance effect of "G Three Gorges EB1".Finally,according to the above research,the issuance effect of "G Three Gorges EB1" is summarized and the following research conclusions are drawn.First,the issuance of "G Three Gorges EB1" achieved innovation in bond varieties and optimized corporate financial indicators;Second,this bond issuance will bring positive environmental effects;Third,on the issue announcement day of "G Three Gorges EB1",the stock yield will fall,but the impact will be shorter and will not affect the intrinsic value of the company.And draw relevant enlightenment from three aspects:For the government,can actively encourage innovation in the bond market and enrich corporate financing channels,at the same time,use policy advantages to build green projects;For bond issuers,Green exchangeable bonds provide new financing channels for green non-listed companies,Companies can use policy advantages to actively develop green projects,enhance the economic benefits of the enterprise and establish a good green corporate image;For investors,it is necessary to improve their own risk awareness and clarify the motives of bond issuance,so as to choose the bonds that suit them for investment.