Analysis On The Motivation And Effect Of Xinxing Pipes To Issue Green Bonds

With the deepening of the concept of sustainable development,green bonds have shown great development potential in Chinese financial market,with increasingly diverse issuance entities and expanding issuance scale.Green bonds are a new type of financial tool that can effectively assist in the development of green industries.In the context of the era of "green development",the steel industry is a key link in Chinese development of a green economy.However,the green transformation of steel enterprises faces difficulties such as shortage of funds and high financing costs.The development goal of green transformation for steel enterprises is consistent with the "green" characteristics of green bonds,and green bonds may be one of the important financing tools for steel enterprises.However,China started developing the green bond market relatively late,and many enterprises lack understanding and recognition of green bonds.Currently,the scale and participation of green bond issuance by domestic steel enterprises are not high,and enterprises lack the motivation to issue green bonds.Therefore,this article adopts specific cases to explore the motives and effects of the issuance of green bonds for emerging cast iron pipes,summarize insights,and provide reference and reference for financing decisions of steel enterprises.This paper takes the issue of 19 Xinxing G1 and 19 Xinxing G2 green bonds by Xinxing Pipes as the case study object.First,the literature related to green bonds by domestic and foreign scholars is classified and sorted out,and the concept and characteristics of green bonds are clarified.The theoretical basis of this paper is summarized as green finance theory,pecking order financing theory,corporate social responsibility theory and reputation theory.Secondly,summarize the current development status of green bonds and the basic information and issuance process of the two green bonds issued by Xinxing Pipes.Once again,based on the characteristics of green bonds,the overview of emerging cast pipes,and the policy environment,it is summarized that the external motives for issuing green bonds by emerging cast pipes include attracting investors’ attention,enhancing social reputation,and promoting industrial green transformation.The internal motives include supplementing the funds required for the company and green projects,alleviating mismatches in investment and financing terms,and reducing financing costs.Finally,the paper analyzes the effect of green bonds issued by Xinxing Pipes from four aspects: market,finance,green project operation and reputation: first,the event study method is used to analyze the market effect of green bonds issued;Secondly,use horizontal and vertical comparative analysis methods and factor analysis methods to analyze the financial effects of issuing green bonds;Thirdly,analyze the operational effectiveness of green projects from both economic and environmental perspectives.Environmental impact analysis is based on the nature of green projects,including energy conservation,air pollutant and water pollutant reduction;Fourthly,analyze the reputation effects of issuing green bonds based on the impact mechanism of reputation effects.Through the analysis of the issuance of green bonds by Xinxing Pipes,this article draws the following conclusions: firstly,supplementing the funds required for the company and green projects is the main purpose of Xinxing Pipes’ issuance of green bonds;Secondly,the issuance of green bonds has achieved positive financial results.However,reducing the financial costs of enterprises,adjusting debt structure,alleviating mismatch in investment and financing terms,and improving short-term debt repayment ability are only more obvious in the year of issuance;Thirdly,issuing green bonds can gain market attention and help enhance the social reputation of enterprises;Fourthly,the operation of green bond fundraising projects has brought positive environmental effects and assisted enterprises in their green transformation.On the basis of analysis,the following insights can be drawn: in the first place,the issuing entity needs to innovate green financing portfolios and broaden green financing channels;Secondly,the issuing entity needs to improve its operational management level to ensure the continuous operation of green projects;Thirdly,the issuing entity needs to pay attention to the disclosure of information related to green bonds and maintain the corporate image.