Case Study On Carbon Neutral Bond Financing Of Huaneng Power International,INC.

In order to realize the sustainable development of human society,our government has promulgated a series of policies to support the green development of enterprises.For this reason,our country takes the lead in putting forward the goals of "carbon peak" and "carbon neutral".In this context,carbon neutral bond emerged.As an important financial tool for realizing the goal of "double carbon",carbon neutral bond has attracted attention from all walks of life since its release.In order to have a more comprehensive understanding of carbon neutral bonds and further promote their development,this thesis takes "21 Huaneng GN001" and "21 Huaneng GN002" issued by Huaneng Power International,INC.as examples to analyze their financing motivations and effects.In terms of financing motivation,this thesis finds through analysis that external environmental factors such as conforming to national policy orientation and industrial transformation and upgrading need promote Huaneng Power International,INC.to issue carbon neutral bonds.Within the enterprise,bailing out the operating funds of the enterprise and expanding the existing financing channels are important motivations for Huaneng Power International,INC.to issue carbon neutral bonds.In terms of financing effect,it is found that the carbon neutral bond issued by Huaneng Power International,INC.has short-term wealth effect through event study method.Second,through the comparative analysis of financing costs between different bonds,it is found that the interest rate of carbon neutral bonds issued twice is low,which reduces the financing cost of Huaneng Power International,INC.The third is to measure the carbon emission reduction benefits of Huaneng Power International,INC.’s carbon neutral bonds;In terms of financing advantage analysis and experience summary,this thesis concludes that corporate governance helps scientific decision-making,high overall asset quality reduces future risks,good performance of past debts provides certain credit support,and strong support of group companies provides guarantee.In view of the above research results,this thesis believes that enterprises should strengthen governance to facilitate the selection of the right time to issue bonds,strengthen the whole process of financing capital management,improve the quality of financial management of related businesses,and steadily promote green transformation.The innovation of this thesis is that carbon neutral bonds,a new green financing tool,is taken as the research object.By studying the two consecutive issuance of carbon neutral bonds by Huaneng Power International,INC.,one of the first companies to participate in the issuance of carbon neutral bonds,the motivations and effects of issuance are analyzed from multiple perspectives.The unique carbon emission reduction properties of carbon neutral bonds are considered.In order to accurately quantify the environmental benefits of carbon neutral bonds,the emission factor formula of power system was used to calculate the carbon emission reduction of carbon neutral bonds.