| It has been a trending topic that how to balance economic development and ecological stability.What did China pursue in the past was the fast speed of economic growth,but now it is the quality.In 2020,Beijing proposed the goal of "30·60" carbon neutrality and emission peak goal,which further set the tone of China’s green economic and transformation of firms,and also drew the future planning map of green finance.This case study takes the first carbon neutral green bond issued by Jiangxi Copper in 2021 in the non-ferrous metals industry as an example.Firstly,it summarizes the previous research conclusions of green bonds and then expands the thinking scope to consider the motivations,benefits and risks of issuing carbon neutral green bonds,the sub-species of green bonds.The paper also sorts out the theoretical foundations,do a summary of the current situation of the carbon neutral green bond market and Jiangxi Copper and its bond issuance.Second,this paper further explores the internal and external motivations of the bond issuance.On the one hand,it issued the bonds to break through the bottleneck of industry transformation and heed the call of green policies.On the other hand,to meet the funds demand for green project,expand financing channels,reduce costs,build a green image and so on.Then,this thesis analyzes issuance benefits.By using the event study method,it is concluded that the issuance has caused positively abnormal fluctuations of the share price,which has increased the value of the company both at the individual level and industry level.About financial benefits,the issuance has given the firm a lower cost than issuing ordinary bonds and other financing methods,and it still has an advantage over carbon neutral bonds and ordinary bonds issued by other companies in the same industry.As for environmental benefits,all the funds from this bond issuance will be invested in the construction of two green projects that will achieve less use of energy and less emission.Jiangxi Copper’s issuance of this carbon neutral green bond actually achieves the dual purpose of economic profitability and environmental protection.Finally,this paper uses the KMV model to assess the default risk,analyze the operational risk from the incomecost-liability perspective,and analyze the policy risk from the macro-industry perspective.All these risk factors will influence the running of the firm and affect the regular interest payment and redemption of the issued bonds at maturity directly and indirectly.Jiangxi Copper issued the carbon neutral green bonds after considering internal and external factors,and eventually obtained positive stock price,financial and environmental benefits as a result.After this,this paper gives some advices:firms can seize the time to issuing carbon neutral green bonds after fully considering macroeconomic policies,changes in industry environment and their own strategic plannings,so as to obtain high-quality and low-cost green financing for subsequent low-carbon transformation;policymakers can diversify their supports for bonds issuance for example cultivating more green investment groups and so on.In the future,with the joint efforts of the government,companies and investors,the green and lowcarbon development of enterprises and the continuous improvement of the green financial market are expected to be realized,which will also contribute to the earlier achievement of the "30·60" goal and the sustainable development of human society. |
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