Analysis On The Motivation And Effect Of Green Exchangeable Bonds Issued By Hunan Iron And Steel Group

Along with the rapid development of our economy and the deterioration of the ecological environment,the relationship between economic development and ecological environment is more and more unbalanced.It is urgently needed to promote economic development to change in the green direction,so green finance has gradually become a goal of each country’s development.As a representative of green financial instruments,the appearance and development of green bonds promote the development of green finance.As a national basic energy industry,iron and steel industry has a huge energy consumption and a greater demand for capital.However,in the process of green transformation of the steel industry,the fund gap is large,the project cycle is long,and the financing channel is single,which makes it impossible for steel enterprises to allocate funds reasonably.Green bonds expand financing channels,not only provide low-cost and stable funds for steel enterprises,but also optimize the asset structure of steel enterprises and improve their competitiveness.Based on the research on green finance and green bonds,this paper takes Hunan Iron and Steel Group issuing green bonds as an example,and uses case analysis,data collection,comparative analysis and qualitative and quantitative analysis to analyze the reasons and benefits of Hunan Iron and Steel Group issuing green bonds.Hunan Iron and Steel Group is the first largest iron and steel enterprise in Hunan province,and the iron and steel industry in our country also has a certain position.The first issue of the green bond was the first batch of green bonds in the iron and steel industry of China,which played a demonstrative role;The third green bond is the first "green + science and technology innovation" bond in China’s iron and steel industry,which combines green low-carbon and technological intelligent transformation for the first time to achieve the goal of low carbon emission and scientific and technological innovation.Therefore,these two green bonds are typical and innovative,and provide experience for other steel enterprises to learn from.Based on relevant theories and data,this paper analyzes the motivation for Hunan Iron and Steel Group to issue bonds,and analyzes the benefits and risks after issuance.Finally,the following conclusions are drawn: First,compared with other ordinary bonds,green bonds have obvious advantages in financing cost and issuance efficiency;Secondly,green bonds can adjust the maturity flexibly to better match the construction cycle of green projects,thus alleviating the problem of debt maturity mismatch and improving the short-term solvency of the group.Finally,all funds raised by green bonds are used for green projects,which bring significant environmental benefits,mainly reflected in reducing production energy consumption,reducing carbon emissions,and improving resource recovery efficiency.In addition,issuing green bonds can enhance the group’s reputation and establish a green corporate image.In summary,the green bond issued by Hunan Iron and Steel Group has produced positive effects.Combined with the experience and problems in the issuance,the following suggestions are put forward: On the one hand,the government should strengthen the supervision of the green bond market,strengthen the information disclosure system,and improve the transparency of green bonds.At the same time,strengthen the crackdown on the "fake green" phenomenon in the market,improve the relevant support policies to encourage enterprises to issue green bonds.On the other hand,enterprises should actively carry out corporate green transformation,and pass green certification,highlighting green attributes in the project.In the project financing,we should combine the actual situation of the enterprise,expand diversified financing channels and choose appropriate financing methods reasonably.