Research On The Influence Of Third-party Certification On The Issuing Interest Rate Of Green Bonds

Leveraging on eco-friendly policies,my country’s green bond market has developed rapidly.Third-party certification can reduce the degree of information asymmetry,transmit positive signals,and reduce risks,thereby enhancing the credibility of green bonds.Therefore,in theory,third-party certification can reduce the issuance rate of green bonds.This paper examines the impact of third-party certification on green bond issuance rates through empirical research and case studies.In the empirical research part,the results show that there is a significant negative correlation between third-party certification and the issuance rate of green bonds,and third-party certification can reduce the issuance rate of green bonds.In order to explore the relationship between green bond issuance rates and third-party certification,the regression results show that the regression coefficient of third-party certification is significantly negative.In order to explore the causal relationship between green bond issuance rates and the impact of third-party certification,the regression analysis of this paper introduces the intersection of bond ratings and third-party certification.The regression test results show that the regression coefficient of the intersection of third-party certification and bond rating is significantly positive.This shows that it is not profitable to conduct third-party certification for green bonds with good credit and low default risk.In other words,third-party certification reduces the interest rate for green bond issuance.In the case study section,the results show that third-party certification has little effect on the asset value of the fixed tranche,but can reduce the issuance rate by increasing the asset value of the floating tranche of the green bond.This paper divides the asset value of green bonds into a "bond" fixed part and a "green" floating part.Using a discounted model to calculate the value of the fixed part of green bonds,the results show that third-party certification has less impact on the value of the fixed part of green bonds.Using the B-S model to calculate the value of the floating part of green bonds,the calculation results show that after third-party certification,the asset value of green bonds in the floating part is greater,which can bring additional carbon benefits.