Research On The Influencing Factors Of Green Bond Issuing Interest Rate

In 2021,there are frequent heavy weather events around the world.The essential reason lies in global warming,the overall climate steady state has begun to show feedback.Therefore,the world has begun to pay attention to the issue of environmental protection,vigorously promote green bond raising funds to reduce industrial carbon.Thus,the study of China’s green bond issuance interest rate has important guiding significance for the development of the green bond market.At first,this paper studies the overall situation of the green bond market in China and the issuance of carbon neutral bonds in 2021 and conducts an inductive analysis of the green bonds issued in China.Then it studies the impact of green factors on bond interest rates,the effects of certification and pilot zones for green finance reform,innovations factors on green bonds and carbon-neutral bond issuance rates through empirical analysis.The empirical results show that green bonds have lower issuance rates than traditional bonds and carbonneutral bonds have lower issuance rates than green bonds.The interest rate of green bonds is also affected by factors such as certification,the interest rate of treasury bonds,bond maturity and other factors.Certification reduces interest rates for the public bond while increasing issuance rates for the private bond.Secondly,this paper analyzes the green bond “G16 Three Gorges 1” issued by the Yangtze River Three Gorges Corporation in 2016 and the carbon-neutral bond “GC Three Gorges 01” issued in 2021 and then compares the rate with their respective general corporate bonds issued in the same period.It shows that the impact of green factors on the interest rate is not obvious in the early stage,but it has a more obvious role in reducing the issuance rate in 2021.Finally,this paper puts forward suggestions and prospects for the development of green bonds.This paper believes that it is necessary to establish a green industrial system from the perspective of entities.Then,from the perspective of laws and regulations,relevant institutions should improve relevant laws and regulations and revise green financial standards.Next,from the perspective of capital markets,it is better to unify green bond standards,lower investors’ transaction thresholds and systematically plan the use of funds to ensure that funds flow to green projects.Finally,in terms of information disclosure,we’d better strengthen certification,regulate the green bond market and prevent the reduction of “green” credibility.