A Case Study On The Financing Of Green Medium-term Notes Issued By Shenzhen Energy Group

With the massive consumption of global fossil energy,the level of greenhouse gas emissions has risen sharply,especially the carbon dioxide emissions,and the greenhouse effect has intensified,which poses a great challenge to the survival and development of natural ecology and human society.In view of this,175 countries officially signed the Paris Agreement on climate change in 2016.As an active practitioner of the Paris Agreement,China actively undertakes the responsibility of carbon emission reduction and strives to achieve carbon peaking before 2030 and carbon neutrality before 2060.The establishment of carbon peaking and carbon neutrality demonstrates China’s responsibility,and has been widely appreciated by the international community.China’s power industry is dominated by coal-fired power,and the carbon emission of the power industry accounts for about 40% of China’s energy carbon emission,which is the key field of carbon emission reduction.Therefore,under the background of carbon peaking and carbon neutrality,the trend of green and low-carbon transformation of power enterprises is irreversible.However,power enterprises are capital intensive industries,with long construction cycle of green projects,large capital demand and limited financing channels.With the strong support of the government’s green financial policy,the green medium-term note provides a new financing path for power enterprises and helps enterprises achieve the goal of green and low-carbon transformation.This thesis studies the case of Shenzhen Energy Group issuing green medium-term note "21 Shenzhen Energy MTN001(carbon neutral bond)",discusses the motivation and advantages of enterprises issuing green medium-term note financing,analyzes the financial effect,stock price effect,environmental effect and social effect of green medium-term note financing on enterprises,and puts forward relevant suggestions for promoting the further development of green medium-term note in China.The research of this thesis can provide a possible financing scheme for other enterprises’ green and low-carbon transformation,and provide reference for enterprises to issue green medium-term notes.The conclusions of this thesis are as follows: first,the issuance of green medium-term notes by Shenzhen energy group can meet the financing needs,reduce financing costs and realize low-carbon transformation.Second,issuing green medium-term notes can bring positive financial effects.This thesis uses the comparative analysis method to compare the changes of the company’s financial indicators before and after the issuance of green mediumterm notes.It is known that green medium-term note financing can improve the company’s operating capacity and improve the company’s return on net assets,but it has little impact on the improvement of the company’s net profit in a short time.Third,issuing green mediumterm notes can bring positive stock price effect.This thesis uses the event study method to quantitatively analyze the impact of the issuance of green medium-term notes on the fluctuation of the company’s stock price.The research shows that the issuance of green medium-term notes can bring a short-term positive effect to the stock price.Fourth,the projects invested by the funds raised by the current green medium-term note can bring environmental benefits such as carbon emission reduction,and have social benefits such as adjusting the energy structure,improving environmental quality and increasing employment opportunities.Fifth,while paying attention to the investment income of green medium-term notes,investors need to pay attention to the financial risk,operation risk and policy risk of issuing enterprises.Finally,this thesis puts forward relevant suggestions from the two levels of enterprises and government,so as to provide reference for enterprises to issue green medium-term notes and promote the further development of green medium-term notes in China.On the one hand,enterprises should seize the opportunity of green and low-carbon transformation policy,improve business efficiency and improve information disclosure;On the other hand,the government should introduce special incentive policies,strengthen information disclosure and supervision mechanism,innovate the types of green medium-term notes and cultivate investors’ ESG investment philosophy.