Green Bonds Financing And Green Transformation Of Iron And Steel Enterprises Based On The Case Study Of HBIS Group

Iron and steel industry is an important driving force of China’s industrialization process and has made great contributions to China’s economic and social development.As a resource-intensive and energy-intensive industry,the development of steel industry is accompanied by high energy consumption and high pollution.The production activities of iron and steel enterprises have caused a waste of resources and serious damage to the ecological environment.As the concept of green development plays an increasingly important role in China’s economic development,the traditional production mode of the steel industry has been unable to meet the needs of economic development in the new era,and the green transformation has become the current development focus of China’s steel industry.With the quiet rise of green finance and the government’s encouragement and advocacy,iron and steel enterprises began to try to use green financial tools to promote their own green transformation.Using case study method,this paper takes HBIS Group as the research object,conducts a deep analysis of the causal relationship between HBIS Group’s issuance of green bonds and its green transformation,and analyzes the mechanism of green finance represented by green bonds acting on the green transformation of micro-entities under the background of environmental governance.By analyzing the development status of iron and steel industry,it is found that financing constraints and environmental externalities are two major obstacles to green transformation of iron and steel enterprises.Green bonds have both incentive and constraint functions.They can not only relieve the financing constraints of iron and steel enterprises,compensate for the losses caused by positive environmental externalities,but also restrain the non-standard behaviors of enterprises to a certain extent,internalize the externalities in green transformation,and promote green transformation of iron and steel enterprises.Therefore,combined with relevant theories,a theoretical model of green bonds’ influence on green transformation of iron and steel enterprises is further constructed.Through the case study of HBIS Group,the following conclusions are drawn: First,green bonds provide direct financial support for green projects through their own issuing advantages,alleviate the financing constraint dilemma faced by iron and steel enterprises in the green transformation,and promote the application of green production technology,green energy conservation and environmental protection technology.Secondly,by compensating the positive environmental externalities generated by green projects and increasing the investment pressure of non-green projects,green bonds promote the internalization of environmental externalities and improve the driving force of green transformation of iron and steel enterprises.Third,in the short term,the initial investment conference of green projects invested by green bonds will increase the operating pressure of enterprises,but in the long term,it will bring the dual improvement of environmental benefits and economic benefits.Green bonds will provide support for green projects and accelerate the green transformation of steel enterprises.Based on the above conclusions.This paper puts forward several reasonable suggestions from the issuer and the government,aiming to provide reference for iron and steel enterprises to realize their own green transformation with the help of green bonds.