Case Study On Green Bond Of Jiahua Energy Chemical Industry Co.Ltd

With the continuous improvement of ecological environment protection and sustainable development,green finance,as one of the important means to promote economic change and development,has attracted great attention at home and abroad.Green bond is one of the most potential parts of the green financial system.However,in China's current bond market,ordinary bonds occupy an absolute advantage in terms of issuance scale.Green corporate bonds account for only 2.1% of the issuance market,which does not match the huge demand for green direct financing in the future.In addition,the market issuance activity of green corporate bonds needs to be improved,and the advantages of direct financing channels in the bond market have not been fully demonstrated.On the one hand,the market is limited,circulation and role is limited.The issuance of green bonds is mainly based on the "demonstration effect",which does not effectively encourage the participation of enterprises,financial intermediaries and investors.On the other hand,there is a clear imbalance between the green bond markets around the world,and companies outside Beijing account for a relatively low proportion of green corporate debt issuance.How to effectively enhance the contribution of enterprises to green bonds and enhance the vitality of the whole market is the top priority of promoting green finance.Vigorously developing the green bond market will help green enterprises to achieve direct financing and reduce financing costs from the micro point of view.From the macro point of view,we can help promote supply-side reform,change the mode of economic development and achieve green and efficient development from the market point of view.Under the background of vigorously supporting the development of green finance and accelerating the market construction,it has important theoretical and practical guiding significance for enterprises to conduct in-depth research on Issuing green corporate bonds.Jiahua Green Bond is the first green bond successfully issued by private enterprises in China.This paper first introduces the basic situation of green bond issued by Zhejiang Jiahua Energy and Chemical Co.,Ltd.Secondly,it expounds the issuing risk,issuing cost and issuing benefit of green bonds.In the aspect of issuance risk,this paper discusses three main risk factors: credit risk,financial liquidity risk and interest rate risk;in the aspect of issuance cost,it summarizes the interest rate cost,valuation cost and opportunity cost faced by the issuance of Jiahua Green Bond;in the aspect of issuance income,it uses event analysis method to analyze the reaction of capital market to the event based on the stock excess return rate,and thus to the event.The reputation benefits and green environmental benefits of enterprises are emphatically analyzed.In addition,the specific environmental benefits are sorted out.Finally,the innovation of issuing green bonds is summarized.By summarizing the effective practices of Jiahua in issuing green bonds,this paper summarizes the relevant enlightenment for Chinese enterprises in issuing green bonds.The innovation of this paper is to systematically summarize the issuing process of Jiahua Green Bond from the perspective of enterprise as issuer,to provide reference for the majority of green enterprises to use green company bond financing,and to broaden the scope of current green bond case studies.This paper holds that the overall risk level of issuing green corporate bonds is relatively low,which helps enterprises save financial costs,has quantifiable reputation and environmental benefits,reduces the emissions of energy and chemical pollutants,and contributes to the cause of environmental protection in China.Therefore,its successful experience has certain reference significance for other enterprises.Enterprises applying for issuing green bonds should strengthen their awareness of the benefits of issuing green bonds and enhance their initiative;select green projects with quantifiable emission reduction effects to improve the approval rate;pay attention to reputation benefits and attract green preference investors.Make full use of the support policy of green bonds,select well-qualified third-party subscribers,enhance corporate social responsibility,and achieve the unity of ecological and environmental benefits.