Study On The Motivation And Effect Of Green Bond Financing Issued By Hbis Group

In 2021,China launched the "3060" carbon reduction target,which is a clear roadmap for the green and low-carbon development of China’s economy.Among all industries in China,the iron and steel industry is the highest carbon emission,so if we want to achieve the strategic goal of "carbon neutral and carbon peak" as scheduled,we must do a good job of green and low-carbon transformation of the iron and steel industry.However,it is difficult to rely on traditional bank credit and general bonds to obtain lowcost and sufficient financing for the environmental transformation of steel enterprises with large investment,long term and high risk.Therefore,the help of green finance is needed.Green finance can increase the initiative of enterprises in environmental protection.Green bonds are an important green financial tool,often with low financing costs,long issuance terms,and policy support.Therefore,it is worth exploring whether steel companies can promote green development through the issuance of green bonds.Therefore,this paper selects HBIS Group,a representative enterprise in the steel industry that has issued green bonds for the earliest time and the most times,to study the motivation and effect of its financing.Based on green finance theory,financing constraint theory and efficient market theory,this paper selects six green bonds issued by HBIS Group from 2018 to 2022 as samples to study their financing motives and financing effects.The research on financing motives is carried out in three aspects: First,saving financing cost.Using comparative analysis and matching analysis to study the level of interest fee saving and green premium of the six green bonds;Second,Meeting the development plan;And third,obtaining policy support.The research on financing effects is carried out in four aspects: First,the stock price effect,using event study method to study the abnormal stock price return caused by the initial issue and the latest issue;Second,the reduction of financial risk,studying whether green bonds reduce the financial risk of enterprises by optimizing the financing structure,alleviating financing constraints and investment and financing maturity mismatch.The third is the environmental effect.Fourth is the improvement of green competitiveness,constructing a comprehensive evaluation index system of green competitiveness of steel enterprises,and using a combination of mutation level and entropy value method to empirically analyze.The following conclusions are drawn from the research paper: First,the motivation of HBIS Group to issue green bond financing are: saving financing cost by saving interest fee and getting green premium,meeting the strategic planning of enterprise strengthening and green development,improving corporate image,and getting financial support from environmental protection policy.Secondly,the effects of green bond financing issued by HBIS Group include: raising the company’s share price in the short term,reducing financial risks by optimizing the financing structure and alleviating the mismatch between investment and financing terms,obtaining environmental benefits,and improving green competitiveness.To address the problems found in the study: first,the advantages of green bonds in saving financing costs are not obvious and stable;second,the willingness of enterprises to participate in green bond issuance is not strong.First,the state should further improve the green bond market;formulate policy standards for the green development of China’s steel industry and guide the market to change its understanding of the steel industry;and further enrich green financial instruments.Second,steel enterprises should seize the opportunity to actively participate in green finance;and strengthen green information disclosure.