Research On Green Bond Financing Risk Of China Three Gorges Corporation

With the rapid development of modern industrial production,the economies of all countries in the world grow rapidly,but the environmental problems and sustainable development problems arising from modern industrial civilization are also increasingly prominent.In the "14th Five-Year Plan",President Xi Jinping proposed to promote Chinese overall development with the concept of "high-quality green development",promote the construction of a new economy on the basis of sustainable development,and coordinate the relationship between human beings and nature.Green economy has become my a strong green impetus for economic transformation and upgrading.Entering a new era of green,low-carbon and circular development in 2021,green bonds will usher in a stage of vigorous development.The natural advantages of integrating ecological protection and economic development are favored by many energy companies."Top-down" green bond development model in China has made the green bond market grow rapidly,which is mainly reflected in the continuous improvement of the regulatory policy system,the substantial increase in market size,the diversified development of issuers and regional distribution,and the diversification of product innovation.Although it is at the forefront of the world in terms of scale and total amount,there is still a certain gap in system construction and system improvement,which is manifested in problems such as excessive credit rating,imbalance in the nature of the issuer and regional distribution structure,and low issuance cost advantage.As one of the largest clean energy companies in China,CTG is an innovative leader in green bonds in China,and has accumulated rich experience in issuing green bonds.This thesis adopts the case analysis method,selects the Three Gorges Corporation as the research object of this thesis,and analyzes the specific terms and follow-up performance of its "20 Three Gorges MTN001" issued in 2020.Based on actual relevant data,this thesis discusses its issuance background,basic issuance terms and possible risks such as interest rate,liquidity,credit and environment,and summarizes the uniqueness of CTG’s issuance of green bonds and the outstanding problems in the process of risk prevention.The study found that "20Three Gorges MTN001" has always maintained a relatively high interest rate spread with the benchmark interest rate,mainly due to the special terms such as redemption,extension,interest deferred rights,and adjustment of the coupon rate attached to the bond,which has a certain interest rate.Risks;the advantages in secondary market returns are not obvious,and the investment value for domestic investors is not outstanding.In addition,the short-term and long-term solvency has declined,and the market liquidity level is not high;the Z-score model shows that the Three Gorges Group It has been in financial distress for many years,and the value-at-risk obtained from the Creditmetrics model shows that the Group has certain credit risks;when faced with the challenges of power system reform and accelerated low-carbon transformation,and the construction and operation of large-scale power plants have many external difficulties.The risk of control has formed the potential environmental risk of the Group..This thesis draws on the experience of China Three Gorges Corporation in issuing green bonds,and combines with the current development trend of green bond market,and on this basis,puts forward specific preventive suggestions from three levels of national policy,green bond market,and issuer for the risks faced by issuing green bonds,which aims to provide a practical basis for the development of green bonds in China,and to provide reference for risk prevention in green bond financing for other energy companies undergoing transformation and upgrading.The green bond market has broad prospects for development.Its healthy development will not only facilitate the long-term sustainable development of various industries and provide new profit growth points for the development of the industry,but also help the real economy individuals themselves adapt to policy orientation and macroeconomic trends,and timely revise their development strategies,take the lead in adapting to the new environment and new changes,and take advantage of the fierce global competition to rise up and ride the wind.