Research On The Factors Affecting Issue Credit Spread Of Green Bonds

Green bonds are an important part of the green finance.In 2016,the approval of Green Financial Bonds issued by the Shanghai Pudong Development Bank marked the beginning of green bond market in China.As the main issuers of green bonds in the world,China has currently led to the issuance of green bonds around the world.Discussing the influencing factors of credit spreads in the issuance of green bonds in China can avoid the risk of issuing enterprises,reduce the financing cost and promote the healthy development of green bond market in China.The paper sums up the national and international literatures about green bonds and bond credit spreads,recapitulating the pricing model of bonds,the influencing factors of credit spreads,and the theory of bond financing cost.The main contents of this paper are as follows:Firstly,the paper summarizes the development of Chinese green bonds' market from 2016 to 2018.The paper analyses the issue scale,financial attributes,environmental attributes of the green bond.In the aspect of issuing scale,green financial debts are still the main body,the scale of green policy financial bonds are increasing,the scale of other green bonds is gradually increasing.In the aspect of financial attributes,the issue interest rates of green bonds are generally lower than those of ordinary non-green bonds,the proportion of medium-and long-term green bonds is in a large proportion,the quality of bond credit ratings is good,and the compilation of green bond index is making progress.But green bonds are not attractive to investors in the secondary bond market.In the aspect of environmental attributes,the ratio of green certification is high,and the local certification bodies are gradually increasing;the raised funds are mainly used in the fields of clean traffic,pollution prevention and clean energy,and the utilization rate of funds is relatively high.At the same time,the paper studies special influence factor of the issue interest rate of the green bond and summarizes the problems of the green bond market of China at present.Secondly,the paper uses a statistical test to compare 318 green bonds with matched 2 094 ordinary bonds.The Wilcoxon test founds that although the average issuance rate of green bonds is 7bp lower than that of ordinary bonds,there is no significant low interest rate issuance advantage.After removing green financial bonds,the green bond issuance rate is significantly lower than that of traditional non-green bonds.And then,the paper uses Mann-Whitney Test to test the issue interest rates for green bonds and ordinary bonds with different credit ratings and offering period,the result is that AAA green bonds,3-year green bonds and 7-more-year green bonds have a significant low interest rate issue.Thirdly,the paper bases on the theoretical research results and the analysis of the state of green bonds to put forward hypotheses.142 green bonds with financial data are used as observation samples.the paper establish multiple regression model by taking green bond issuance credit spreads as explanatory variables,and taking green certification,enterprise ownership,return on equity of corporate and government subsidies as explanatory variables to study the influence factors of the issue interest rate of the green bond,and taking bond characteristics as control variables.The conclusions follow: The green certification,enterprise ownership and industry characteristics of bonds can significantly cut the issue credit spreads,which promote the reduction of financing costs of enterprises.The issue credit spread of green bond is not sensitive to the financial level of enterprises,and the government subsidy policy has no significant effect on cutting the issue credit spread of green bond issuance.Finally,based on the problems found in the research and empirical analysis of green bonds,the paper puts forward specific suggestions from the aspects of government subsidies for green bonds,issuance standards,third-party evaluation and certification mechanisms,the construction of green standardization systems,and the cultivation of green investors.