Green Bonds,Financial Flexibility And Enterprise Green Transformation

The steel industry is a huge promoter of China’s industrialization process,and plays a pivotal role in the process of realizing industrial modernization and social and economic takeoff.As a resource and energy-intensive industry,the production of steel is often accompanied by the characteristics of large energy consumption and serious environmental pollution,which not only brings a major problem to the entire steel industry and even the world’s environmental protection.With the prevalence of the concept of green development,solving the problems of waste of resources and destruction of the ecological environment has become the common goal of the world.The iron and steel industry not only needs to change the traditional and backward production methods in the past,but also needs to make the enterprise’s comprehensive green transformation as the focus of current development.As an important force in promoting green transformation and development,green bond financing provides an effective means for steel enterprises to comprehensively promote green transformation.With the continuous development and improvement of my country’s capital market,enterprises will face many uncertainties in the operation process.Financial flexibility is not only more and more important in the financial field,but also becomes the focus of enterprises’ continuous operation.This paper analyzes the role of green bonds in the green transformation of enterprises by analyzing the typical example of the green transformation of heavily polluting enterprises—Hegang Group Co.,Ltd.Influence,and then explain how HBIS actively utilizes its own financial flexibility under the background of policy support to achieve the purpose of green transformation.Through the case study of HBIS,the following conclusions are drawn: First,green bond financing provides financing convenience for environmentally friendly enterprises,and solves the financing problems faced by enterprises in the process of green transformation with the advantages of lower issuance interest rates and government subsidy policies.Constraints,but also reduce the financing costs of enterprises.Second,enterprises maintain a certain degree of financial flexibility to meet the R&D investment required for green transformation and environmental protection investment in green projects,and increase the enthusiasm of steel enterprises for green transformation.Third,the funds raised by green bonds can not only accurately allocate funds required for green projects,but also constrain companies to actively fulfill their social responsibilities,enhance their green reputation,and promote green transformation.Based on the above research conclusions,some reasonable suggestions for encouraging the green transformation of the steel industry are put forward from the perspectives of the government and enterprises that need to carry out green transformation,in order to provide reference and reference measures for the entire iron and steel enterprises to achieve a comprehensive green transformation.