Analysis On The Motivation And Effect Of Green Bond Issuance By Xingrong Environment

Green bonds are an effective financing tool that serve as a powerfulmeans for companies or financial institutions to raise funds.The key to green bonds is that companies can obtain large amounts of funding at low costs and use these funds specifically for green projects that meet certain standards.Green bonds can widen the financing channels of companies and generate stable cash flows.In addition,issuing green bonds can enhance a company’s green reputation and promote its low-carbon development.This will be beneficial for achieving the national goals of peak carbon emissions and carbon neutrality,and help to promote coordinated economic and environmental development.However,green bonds are still a relatively new financing tool in China.The green bond system is still in the development stage and relevant policies and regulations are not yet perfect.Thus,it is necessary to conduct further in-depth research on cases of Chinese listed companies issuing green bonds to explore the road that is suitable for the development of Chinese green bonds.This thesis takes Xingrong Environmental Co.,Ltd.as a case study company and uses its two green bond issuances in 2019 "19 Xingrong G1" and "19 Xingrong G2" as research objects.After understanding and studying the relevant theories of green bonds,this article conducts a detailed combing of the specific information of the green bonds issued by Xingrong Environmental.It then analyzes the reasons for Xingrong Environmental’s issuance of green bonds and evaluates the impact of this green bond issuance in detail.Specifically,it first introduces the research background and significance of green bonds and reviews the related research achievements.Secondly,it summarizes the relevant theories of green bonds briefly and summarizes the theoretical basis used in this article.Thirdly,it briefly describes the industry background and company profile of Xingrong Environmental.Then,it elaborates on the reasons and effects of Xingrong Environmental’s issuance of green bonds.When evaluating the financial effects of Xingrong Environmental’s green bond issuance,it uses the comparative analysis method to compare the financial data before and after Xingrong Environmental’s issuance of green bonds and compares the financial data of Xingrong Environmental and its comparable company,Green City Water.It uses the event study method to analyze the changes in stock prices before and after Xingrong Environmental’s issuance of green bonds to evaluate the market effects of Xingrong Environmental’s issuance of green bonds.In addition,it also elaborates on the social effects of Xingrong Environmental’s green bond issuance and analyzes the impact path of the implementation effect.Finally,this article summarizes the case and draws conclusions and insights.Through a detailed analysis of the issuance of green bonds by Xingrong Environment,the following research conclusions are drawn.First,the main reason for Xingrong Environment to issue green bonds is the lower financing costs and compensation for the company’s operating funds.Second,the issuance of green bonds has brought positive effects to Xingrong Environment.Third,the implementation of this green bond issuance by Xingrong Environment helps to shape the company’s green image.In addition,through the analysis of this case,this article summarizes some inspirations about green bonds.First,companies should accelerate the innovation of green bonds and help the development of green bonds.Second,the quality of information disclosure for green bonds still needs to be improved to avoid improper use of green bonds.Third,all sectors of society should promote the concept of green investment and cultivate a green atmosphere in the market.It is hoped that this can provide reference for other public utility companies to issue green bonds and contribute to the development of green economy in China.