Research On The Motivation And Effect Of Real Estate Enterprises To Issue Green Bonds

As a sector with great potential for carbon reduction,real estate should respond positively to the country’s call for a green transformation.Cnocean Group is a listed company in China’s real estate industry,and in line with its development principles and strategic objectives,the development of green projects and the construction of green homes is its main business.Similarly,when choosing its financing method,Cnocean Group’s issuance of green bonds is more in line with the company’s strategy than other financing channels,thus promoting the green development of the company.This paper focuses on the motivations and effects of green bond issuance by Cnocean Group,which is an imperative in the current macro policy and industry situation.This paper takes Cnocean Group as a case study,reviews the existing literature on green bonds,real estate green transformation and real estate financing,and examines the four green bonds issued by Cnocean Group from 2020 to 2022 based on theories of sustainable development,socially responsible investment,signaling and sequential financing.The following conclusions were drawn from the study:(1)Cnocean Group’s motivation for green bond financing is to respond positively to the national policy,achieve green transformation,reduce corporate financing costs,increase the proportion of non-current liabilities in debt,and make the corporate green brand image deeply rooted in people’s hearts.(2)The issuance of green bonds enabled Cnocean Group to achieve green transformation in a shorter period of time.By issuing green bonds,Cnocean Group can replenish the capital required for the construction of green building projects and increase the enthusiasm of Cnocean Group to build green projects.At the same time,the introduction of environmentally friendly technologies in the construction of green projects will save resources and energy consumption,which will further strengthen and reinforce the green brand image of the Group,which will attract the attention of the media and the public,and will eventually have a negative impact on the Group,making it continue to implement the green transformation.Therefore,the issuance of green bonds can facilitate Cnocean Group to continue to deepen its green transformation.(3)The issuance of green bonds can bring many benefits to the company.Firstly,the share price of Cnocean Group has increased to a certain extent in the short term after the announcement of using green bonds to raise funds.Secondly,by investing the funds raised through the green bond issue in green building projects,Cnocean Group was able to reduce resource consumption and generate sustainable environmental benefits.Thirdly,the issuance of green bonds by Cnocean Group can provide an example for other real estate companies to use green bond financing.In addition,by issuing green bonds,Cnocean Group’s "green" image will be covered by the media,thus enhancing the company’s green brand image.Finally,by issuing green bonds,Cnocean Group was able to increase the proportion of non-current liabilities in its total liabilities,while lowering its financing costs,broadening its financing channels and easing its financing pressure,thus enhancing its brand competitiveness.