Research On The Risks And Effects Of Green Bond Issuance By Electric Power Enterprises

With the continuous advancement of industrial modernization and the massive consumption of energy,the impact of ecological and environmental issues on China is increasingly prominent.In recent years,although China has made great progress in ecological environment protection,environmental pollution and other issues are still very serious at present and for a long time in the future,and the trend of ecological environment deterioration has not been fundamentally reversed.In September 2015,the Central Government issued the "Overall Plan for the Reform of the Ecological Civilization System",which is the first time in China to propose the establishment of a green financial system from a policy perspective.As an important component of the green financial system,green bonds have the characteristics of low issuance cost,fast financing speed,and long issuance cycle,which is very consistent with many new energy construction projects.Some traditional electric energy enterprises can transform their industrial development model by issuing green bonds,shifting from traditional energy to clean energy.Therefore,it is crucial to study the risks faced by power and energy companies in the process of issuing green bonds and the effects achieved.This article takes three issues of green corporate bonds issued by the group as the research object,with the help of efficient market theory,externality theory,and pecking order financing theory;Using the literature research method,case study method,comparative research method,and event research method,in-depth analysis is conducted from three aspects: the motivation,risk,and effect of the group’s issuance of green bonds.Through research,it is found that there are four main motivations for Shenzhen Energy Group to issue green bonds: first,to respond to the national green development policy;The second is to reduce the cost of enterprise financing through issuing bonds;The third is to meet the financial needs of the group’s expansion;Fourth,to improve the debt structure of the Group.In terms of issuance risk,the three green bonds of the Group face low interest rate risk and liquidity risk;The results measured by the Z model in credit risk indicate that the financial situation of the group is poor,but the situation is improving every year;The results measured by the credit measurement model indicate that the group faces less risk.In terms of issuance effect,through the event study method,it is found that the issuance of green bonds by groups has a positive effect on stock prices;In terms of financial effects,the group’s debt repayment,profitability,and operating capacity have improved after the issuance of green bonds,but the degree of improvement in growth capacity is not significant.In terms of environmental effects,the green projects raised and invested by the Group meet green standards and have achieved the expected results.