Analysis On The Motivation And Effect Of Eastern Shenghong Green Bonds Financing

The rapid development of human society has been accompanied by increasingly active production activities,and the neglect of environmental protection in the early stages of economic development has led to the destruction of the ecological environment and climate problems.The environmental degradation has prompted all regions to pay attention to environmental protection and to harmonize economic development with environmental protection,guide the economy towards environmental protection with green industry as the guide,and pay attention to the investment and construction of green projects.Based on this understanding,in 2015,China included "green finance" into the national strategy for the first time;on September 22,2020,General Secretary Xi Jinping proposed the policy goal of "carbon peaking and carbon neutrality" for the first time at the 75 th session of the United Nations General Assembly,officially Subsequently,in the report of the 20 th National Congress,China also mentioned the term "green finance" several times,emphasizing the vigorous development of green economy and providing a good environment for the development of green finance;socialist modernization also emphasizes the proposition of harmonious coexistence between human beings and nature,further putting forward higher requirements for China to achieve green and low-carbon development.In this environment,the effective use of green financial instruments is crucial to the sustainable and prosperous development of green industries.Green bonds,as one of the green financial instruments,are used to raise funds for green projects in the form of corporate bonds to guide the investment of funds in green projects,thus developing a green economy and providing support for the green transformation of enterprises.Green bonds have both economic and green attributes and can bring enterprises low-cost funds to match green investment projects,while also guiding them to green transformation to improve the ecological environment.There are still some problems in the development of green bonds,such as the lack of awareness of enterprises,a single type of issuing body,and most of the issuing entities are state-owned enterprises,while the enthusiasm of private enterprises to issue green bonds is yet to be improved.In this regard,this thesis analyzes the motives and effects of green bond issuance through specific cases,in order to provide a new empirical perspective for private enterprises to issue green bonds,which is of great practical significance and academic value.In this thesis,We analyze the motivations and effects of Eastern Shenghong’s green bonds using three different methods: literature study,case study,and event study.First,the basic concept,classification and characteristics of green bonds are introduced,and China’s green bond issuance policy is sorted out.Second,the development history of the case company,Orient Shenghong,is described,including basic information and the company’s operation and financial status before the issuance of green bonds,and the basic information,issuance plan,and characteristics of its green bond "19 Shenghong G1" are reviewed.The external factors are the continuous development of China’s green bond market,the pressure of green transformation in the industry,and the national green bond support policy;the internal factors include: filling the green project financing gap,reducing financing costs,alleviating investment and financing maturity mismatch,achieving green strategic planning,and enhancing corporate green reputation.In order to explore the effect of green bond issuance,this thesis analyzes three aspects: financial,market,and environmental benefits of green governance.In terms of financial effects,we found that by issuing green bonds,the public reduced financing costs and improved corporate debt service and profitability,and the issuance of green bonds brought good financial effects to the enterprise.In terms of market effects,the event study method was used to analyze "19 Shenghong G1" and found that the issuance of green bonds sent positive signals to the market,which brought positive market effects to Orient Rainbow.In terms of economic and environmental benefits,the analysis shows that the green bond issuance finally acts as a green project,helping the company to carry out green governance,which brings environmental benefits to the company and then brings economic benefits.Finally,this thesis summarizes the motivation and effects of green issuance in Eastern Shenghong and suggests countermeasures for the further development of green bonds in terms of government,issuers and regulators.Through the analysis of the green bond issuance case of Eastern Shenghong,this thesis draws the following conclusions: first,green bond issuance can improve corporate financial performance;second,green bond issuance can reduce information asymmetry,which has a positive effect on the capital market;third,issuing green bond companies can guide corporate green investment,which has a positive effect on green governance;fourth,green bonds can guide corporate green transformation.On this basis,the following research revelations are derived: first,for enterprises,green transformation enterprises should make good use of credit enhancement mechanisms and actively seek new financing channels;second,the government should actively explore green development incentive mechanisms for private enterprises and encourage them to issue green bonds;third,regulators should standardize the disclosure system and the review and supervision system.