A Case Study On The Financing Of Green Medium-Term Notes Issued By Chongqing Rail Group

In the context of global warming,it is urgent for all countries in the world to cultivate and develop green industries and reduce greenhouse gas emissions.For this reason,the green financial market came into being.With the increasingly mature domestic green financial market,the increasing number of issuers and investors,the increasingly perfect product types,and the increasingly standardized relevant policies,green bonds have become an integral part of my country’s green financial system and play a pivotal role in promoting my country’s on-time schedule.It plays an important role in achieving the goal of "carbon peaking and carbon neutrality",accelerating the transformation and upgrading of traditional industries,and striving to build an ecological power.Under the support of the concept of "ecology first,green first",my country’s transportation industry took the lead in responding to the policy call,and effectively promoted the implementation of various industrial environmental indicators.In the field of rail transit,urban rail transit has the characteristics of high demand,safe operation,fast convenience,and energy saving,etc.,and has become the focus of green bond support.By issuing green bonds,enterprises can not only help themselves achieve low-cost financing,To enhance the core competitiveness in the industry and achieve the vision of pursuing green transportation,it can also improve the capital structure through new financing methods,build corporate image,enhance corporate value and reputation,and lay a solid foundation for long-term development in the future.Therefore,this paper aims to explore the real reasons for specific companies to issue green medium-term notes and the effects and risks brought to the issuers of green notes by focusing on the rail transit industry,in order to provide other companies in the same industry with appropriate financing methods in the financing process.Learn and reference.This paper takes the second phase of green medium-term notes(carbon neutral bonds)"21 Chongqing Rail Transit GN002" issued by Chongqing Rail Transit Group(hereinafter referred to as "Chongqing Rail Group")in 2021 as the research object,and focuses on its issuance plan.Analyze and understand the motivation of enterprises to issue green medium-term notes,the whereabouts of the funds raised,the economic,social and environmental benefits and the risks that may be brought to the company.The article first gives a brief overview of the current market background,collects domestic and foreign literature on green bond and medium-term note financing,and clarifies the relevant concepts and theoretical foundations of green finance.After sorting out the development history,existing policies and financing status of green bonds,and analyzing the problems existing in the current issuance of green bonds,it is believed that the domestic green medium-term note market has imperfect policies and regulations to support the development of green notes,and green standards are self-contained.It is difficult to integrate with the world,and the green bond information disclosure system is not perfect.Then it briefly introduces the industry in which the issuer Chongqing Rail Group is located and the basic information of bond issuance,and gives a detailed description of the use of raised funds.Afterwards,the specific bill issuance plan will be elaborated,including the motivation of using the "21 Chongqing Rail Transit GN002" bond financing,pricing rationality analysis,carbon neutrality target compliance analysis,and evaluation of bills from environmental,social and financial aspects.By comparing it with other bonds or issuance methods,this paper explores whether this carbon neutral bond has financing advantages,and studies its possible risks from four aspects: liquidity,operation management,external operation,and policy.Finally,draw conclusions based on the above research,and put forward suggestions and inspirations from the perspectives of the government,third parties,and other companies,in order to reduce financing costs for rail transit companies or industrial manufacturing companies in other cities by issuing general green medium-term notes or carbon neutral bonds.Improve financing efficiency,set a typical example,and provide valuable experience.The main research conclusions of this paper are as follows: First,the reason why Chongqing Rail Group issued "21 Chongqing Rail Transit GN002" is mainly to consider the implementation of the enterprise’s pursuit of green transportation strategic goals,the expansion of financing channels,the adjustment of capital structure and the adjustment of enterprise value.Improve four aspects,and make contributions to the best of our ability to improve global climate change,encourage manufacturing to increase green investment,and leverage social capital to invest in low-carbon green projects.Second,the green medium-term notes are reasonably priced,meet the requirements of carbon neutrality goals,and have good environmental and social benefits.Although the financial effect does not improve the company’s profitability,it has good debt repayment strength,which is comparable to similar general bonds.Compared with the obvious cost advantage,it provides new ideas for enterprises and even the entire industry to raise funds.Third,there is a lack of a corresponding regulatory mechanism in the process of issuing green bills by enterprises,the number of third-party independent certification agencies is small,and the information disclosure content related to corporate bonds is not complete and standardized,which will affect the funds raised and invested projects to a certain extent.resulting social environmental effects.Based on this,the suggestions and inspirations put forward in this paper are as follows:the government should increase the support for green industry,provide policy inclination,improve the regulatory policy and incentive system,stimulate the enthusiasm of investors,and at the same time vigorously cultivate green investors and improve the professionalism of participants;The three-party independent evaluation agencies should unify the green certification standards,enhance horizontal comparability,and improve their own quantity and professionalism.And it draws three enlightenments: detailed information disclosure,strengthening enterprise risk awareness and gradually integrating with the international market.