The Research On The Issuance Of The Financing Effect And Risks Of "19 Xinxing Green Bond 01"

The Fifth Plenary Session of the 18th CPC Central Committee first elaborated on the content of the new development concept,which mentioned the need to adhere to green development to achieve harmony between man and nature.Iron and steel enterprises are the hardest hit by pollution,and under the influence of national macro policies,the operation of the industry has been hampered and the financing of enterprises has been affected.The Report on the Implementation of National Monetary Policy in the Fourth Quarter of 2019 emphasizes the need to give full play to the advantages of capital,support the implementation of mergers and acquisitions of steel enterprises,and promote the direct financing policy of "deleveraging and cost reduction" in order to promote the high-quality development of the industry.Green bonds are an emerging green financial instrument that can play a positive role in the green development of steel companies and help them to achieve the goal of "double carbon".This paper chooses "19 Xinxing Green Bond 01" as the research object,in order to know whether green bonds can be used as an effective financing tool for green transformation of iron and steel enterprises,because "19 Xinxing Green Bond01" is the main issuer of listed steel companies in the first issue of green bonds,so it is more representative as the object of study.This paper firstly takes efficient market theory,optimal financing theory and stakeholder theory as the theoretical basis for the case study,and then analyzes the financing benefits and risks of "19 Xinxing Green Bond 01" by taking into account the basic situation of Xinxing Casting Pipe Co.The analysis of the financing benefits and risks of "19 Xinxing Green Bond 01",some problems in the issuance of green bond financing,and finally the corresponding policy suggestions are put forward for these problems.The results of the analysis show that: firstly,green bond financing can improve the financial benefits of enterprises while taking into account the environmental and social benefits,such as reducing the cost of corporate financing,improving the profitability of enterprises,reducing the emission of pollutants and strengthening the recycling of energy.Second,when using the event study method to analyze the impact of news of green bond issuance on stock prices,it is found that news of green bond issuance does not have a significant positive effect on stock prices.Third,some scholars have studied that green bonds are less risky than ordinary bonds,but still have some risk.In this paper,by comparing the effective duration and convexity of green bonds with the same credit rating and maturity issued in the same period,it is found that the interest rate risk is at a medium level,and using the KMV model,it is concluded that although the credit risk of this green bond is low,there is a rising trend of credit risk in the past two years,and then,according to the data,the liquidity of green bonds is insufficient.Fourth,through the analysis of the case,some problems in green bond financing are summarized,such as imperfect information disclosure system,lack of professional third-party certification,imperfect enterprise risk management mechanism and low investor participation.Finally,this paper puts forward suggestions from both the government and enterprises.At the government level,the disclosure system of green bond information should be improved,the incentive mechanism of enterprises and investors should be strengthened and the green concept should be promoted to investors.At the enterprise level,the third-party certification of green bonds should be improved and the risk management of enterprises should be strengthened.This paper analyzes the financing benefits and risks of green bonds from a microscopic perspective,which provides a reference for the financing of polluting enterprises and also enables the issuance of some problems in green bond financing,hoping that relevant departments and enterprises will get attention and actively solve related problems to promote the development of green bond market.