Research On The Effectiveness And Risks Of Green Bond "21 SFG1" Issued By SF Tyson

With the introduction of China’s "double carbon" target and the start of the "14th Five-Year Plan" period,green bonds have received more attention and sought after,and China’s green bond market has a broad space for development.However,the problems of low quality of green bond information disclosure and inactive green bond secondary market in China’s green bond market have not yet been effectively solved,and the participants in China’s green bond market pay less attention to the risks of green bonds.In order to promote the orderly and healthy operation of the green bond market,we should not only pay attention to the effects brought by the issuance of green bonds,but also pay attention to the risks of green bonds.This thesis selects SF Tyson as a representative case company to study the effects and risks of its green bond issue "21 SF G1" for financing.Firstly,we introduce the relevant companies and their green development direction,and analyze the motivation of 21 SF G1 issuance from the perspectives of policy,strategy,reputation and finance,and then introduce the basic information and operation process of 21 SF G1.Next,the effects brought by the issuance of green bonds are specifically analyzed in terms of share price,financial,social and environmental aspects.Again,the possible risks of SF Tyson green bonds are analyzed in depth,involving risks common to ordinary bonds,including bond interest rate risk,bond liquidity risk,and bond credit risk,as well as risks unique to its own green attributes,including the risk of using funds raised and green project risk.At the same time,it is pointed out that the case study of SF Tyson is worthy of reference and attention.Finally,based on the findings of the study,suggestions for further improvement of the green bond market are put forward from the perspectives of both relevant departments and green bond issuers.To a certain extent,this paper enriches the risk research system of green bonds in China and can raise the attention of green bond market participants to the risk of green bonds.Moreover,since the case study of SF Tyson is a private enterprise,the research of this paper provides some empirical evidence for the practical effect of green bonds in private enterprises.The main conclusions of this paper are as follows:(1)The issuance of SF Tyson’s green bonds brings positive effects in terms of share price,financial,social and environmental aspects,specifically in terms of issuing interest rate costs with certain financing advantages,optimizing debt structure,relatively alleviating the project maturity mismatch problem,improving the short-term debt servicing and operating capacity of enterprises,guiding other enterprises and employees to focus on green and low-carbon development,energy saving and emission reduction,and Protect the environment.(2)The overall risk faced by SF Tyson’s green bonds is relatively small,among which,bond interest rate risk and bond credit risk are small,and there is no risk of using the funds raised;however,there may be green project risk due to the low quality of information disclosure,and the trading activity is not high,and there is a certain risk of bond liquidity.(3)Some practices of SF Tyson are worthy of reference by other companies,including issuing green bonds with high debt ratings to improve bargaining power,conducting interest rate inquiries from investors by book building to promote subscription of green bonds,making full use of policy preferences such as local government subsidies to reduce overall financing costs,setting debt service guarantees for green bond repayment to reduce bond credit risk,and consciously hiring There are also some noteworthy issues that need to be improved,including the low quality of green bond information disclosure and the large difference between the actual investment amount of green bond proceeds and the proposed investment amount stated in the prospectus.