Case Study Of Sinopec Carbon-neutral Bonds

In order to accelerate the construction of ecological civilization,the Chinese government put forward the goal of "carbon peak and carbon neutral" at the 75th Session of the United Nations General Assembly.With the implementation of the"double-carbon" strategy,enterprises’ demand for green project construction funds has increased significantly,creating opportunities for the birth of carbon-neutral bonds.As an innovative green debt financing tool under the background of "double carbon",carbon neutral bonds need the raised funds to comply with the Catalogue of Green Bond Support Projects,focusing on carbon emission reduction projects.As a major energy consumption country,China’s oil and gas industry provides more than half of China’s energy supply.Meanwhile,the oil and gas industry is also a high energy consumption industry,so the low-carbon transformation of the oil and gas industry is urgent.As a leading enterprise in the oil and gas industry,Sinopec took the lead in issuing the industry’s first carbon neutral bond,which is of typical significance.This case takes the carbon neutral bonds issued by Sinopec as the research object.Firstly,it introduces the market background of the case.By analyzing the development status of China’s carbon neutral bond market,found that the issuers of carbon neutral bonds in China are concentrated in large state-owned enterprises with high credit rating,and the issuing interest rate is low and the maturity is long,and the inter-bank market is the main trading market.Secondly,it analyzed the motivation of Sinopec’s current carbon neutral bonds and introduced the basic information of "21 Zhongji GN 001",and found that the financing method of carbon neutral bonds was more suitable for Sinopec.Thirdly,to evaluate the benefits of Sinopec from three aspects of finance,stock price and environment.In terms of financial benefit,the use of financial indicators analysis shows that the current carbon neutral bonds can save the financing cost of Sinopec,but also increase the debt repayment pressure;In terms of stock price benefit,the issue of carbon neutral bonds through event study has brought positive stock price benefit to Sinopec;In terms of environmental benefits,the carbon emission reduction path of the carbon neutral bond raised project in this period is analyzed,and it is predicted that the project can reduce carbon dioxide,sulfur dioxide and other pollutants after completion and operation.Finally,through this paper,the enlightenment of other enterprises issuing carbon neutral bonds and the development of carbon neutral bond market in China.