A Case Study Of China Three Gorges Corporation Issuing Green Exchangeable Corporate Bonds

Under the strategy of ecological civilization construction,China began to put forward green finance policy in 2015,and China’s green finance system was initially established in 2016.In China’s green financial system,the development of green bonds is better than other varieties,and it is widely used to solve the financing problems of most green industries.It is not only supported by the government,but also highly accepted by enterprises and investors as a way of investment and financing.However,as China’s green industry is booming,green projects emerge all the time,the demand for capital is also increasing,and the financing channels of green enterprises are limited.For non-listed enterprises,they can only obtain financing by loans or issuing bonds,which slows down the pace of the development of green industry.In this context,China Three Gorges Corporation has made innovation of the traditional green bonds and issued green exchangeable bonds in 2019,which is the first attempt in China,and it provides a new idea for China’s non-listed green enterprises who need large-scale financing.This is no doubt of great significance to the construction of ecological civilization and the development of green industry in China.This paper takes the first green exchangeable bond issued by China Three Gorges Corporation as an example,and uses case analysis method and event study method to conduct research,based on searching and reading relevant literature at home and abroad.In the first part of this paper,the background and significance of the research are described,and the literature related to green bonds and exchangeable bonds is carefully reviewed.The second part is the case introduction,which mainly introduces the operation status and the whole process of issuing bonds of Three Gorges Corporation and Yangtze River Electric Power Company.And then,analyze the motivation,issuing conditions,issuing income and risk,issuing effect and successful issuing reasons of the Three Gorges Corporation,draw enlightenment from this paper and give relevant suggestions..The main enlightenment of this paper is as followed:green exchangeable bond broadens the financing channels of green industry;Issuers can achieve the purposes of low interest financing and moderate reduction of holdings;Investors who invest in green exchangeable bonds can get good returns;Green exchangeable bonds will have a certain impact on the stock price of the target company.On the basis of the above analysis,this paper gives some suggestions:for the issuer,it is necessary to design the issue terms reasonably and set a reasonable time for the conversion of shares to avoid adverse effects;For investors,they should invest rationally,fully understand the terms of green exchangeable bonds,and protect their own interests.As for the regulatory authorities,they should strengthen the supervision of issuance and introduce relevant laws and regulations for the provision setting to regulate the healthy development of the green exchangeable bond market.