Research On The Motivation And Effect Of Xingrong Environment Green Bonds Issuance

In recent years,The pace of China’s economic construction continues to accelerate,significant improvement in people’s living standards.While their material needs have been continuously met,certain spiritual pursuits have emerged,and they have begun to yearn for a better quality of life,and have increased the focus on green industries.China has also issued a series of policies to support the development of green industries.The report of the 19 th National Congress of the Communist Party of China in 2017 clearly pointed out that China should transform into a green economy.In the economic work conference held by the central government in 2020,it has been proposed many times that the goal of achieving carbon peaking by 2030 and carbon neutrality by 2060 will be achieved.It can be seen that green development has become the focus of future government work.As a new type of financial tool that can promote the development of green industries and accelerate the upgrading and adjustment of industrial structures,green finance has also attracted more and more attention from the market.As an important part of green finance,green bonds have also been continuously favored by the capital market.However,due to the relatively late development of China’s green bond market,most companies have little understanding of green bonds and lack the motivation to issue green bonds for financing.Therefore,it has very important practical significance and academic value to analyze the motivation and effect of green bond issuance in the form of specific cases.This thesis mainly adopts the literature research method and case study method to analyze the motivation and effect of Xingrong Environment green bond issuance.First,the basic concept,development history and types of green bonds are introduced,and then the common motivations and effects of corporate issuance of green bonds are analyzed.Secondly,it introduces the basic situation of Xingrong Environment,the issuer of the case,including the company’s operation and financial status before issuing green bond,and sorts out the basic situation and issuance process of the two green bonds of Xingrong Environment.An in-depth analysis of the motives for issuing green bonds mainly includes: reduce the company’s financing costs,supplement the company’s and green project working capital,expand the company’s financing channels,optimize the company’s debt structure,respond to the call of the national environmental protection policy and enhance the green image.Thirdly,this thesis makes an in-depth analysis of the issuance effect of Xingrong Environment from the four aspects of market,finance,reputation and environment.In terms of market effect,this thesis adopts the market research method to analyze the first green bond issued by Xingrong Environment “19 Xingrong G1”.It was found that the issuance of green bond had brought positive market effects to Xingrong Environment.In terms of financial effects,this thesis selects Xingrong Environment-related financial indicators to analyze and finds that the debt repayment,profitability and growth capabilities of companies that issue green bonds have been improved.The issuance of green bonds has brought good financial effects to the company.In terms of reputation,economic and environmental effects,this thesis finds that the issuance of green bonds has significantly improved the corporate image of Xingrong Environment,and produced good economic and environmental effects.Finally,this thesis summarizes the motives and effects of Xingrong Environment’s green issuance,and puts forward relevant countermeasures and suggestions for the development of green bonds from the perspectives of the government,issuers and third-party institutions.Through the analysis of Xingrong Environment green bonds issuance cases,this thesis concludes the following studies: first,Issuing green bonds can provide companies with new sources of financing;second,the main purpose of the company’s issuance of green bonds is to supplement working capital;third,the issuance of green bonds can attract market attention and help improve the company’s reputation;fourth,the issuance of green bonds has brought relatively significant economic and environmental effects to the company.On this basis,the following research implications are drawn: first,companies should strengthen green bonds innovation and expand the green bonds market;second,the government should improve incentive policies for green bonds issuance to attract market investors;third,regulators should improve green bonds issuance bond information disclosure system to enhance product transparency;Fourth,the government needs to formulate industry unified standards to regulate the green bonds market.