Analysis On The Causes And Effects Of HN Group’s Carbon Neutral Green Bond Issuance

In recent years,with the rapid development of the global economy,the deep-seated contradiction between the economic development and environmental protection in our country has become more and more prominent,and the issue of environmental protection has attracted the attention of the whole society.Sustainable development,ecological civilization construction,green development,etc.are the basic concepts that our country is committed to achieve harmonious coexistence between man and nature.The Chinese government proposed at the United Nations General Assembly in September 2020 to achieve "carbon peaking and carbon neutrality".The target is a solemn commitment to the world in terms of carbon reduction.The proposal of the "dual carbon" goal has brought new opportunities for the development of green finance in our country.In this context,carbon-neutral green bonds,an innovative application of green finance,were born.As a sub-type of green bonds,carbon-neutral green bonds should not only meet the requirements of the "Catalogue of Green Bond Support Projects",but also focus more on the field of carbon emission reduction.However,carbon-neutral green bonds are a new form and new thing in the capital market,how the market reacts to them,whether there is still room for improvement in the setting of relevant provisions,and how to promote the further development of the carbon-neutral green bond market,etc.,but few studies have analyzed it.With the continuous advancement of carbon neutrality goals,enterprises have greater demand for green funds under the pressure of carbon emission reduction,and the development of carbon neutral green bonds is facing unprecedented opportunities.Therefore,it is necessary to clarify the reasons why companies choose to issue carbon-neutral green bonds as bond issuers and the effects of carbon-neutral green bonds issued by companies,and then summarizes the existing problems in carbon-neutral green bond issuance,and tries to put forward ideas to solve the potential problems,so as to guide the expansion of the carbon-neutral green bond market.As one of the first batch of carbon-neutral green bond issuers in the exchange market,HN Group analyzed the first phase of carbon-neutral green bonds issued by HN Group in 2021,which is more representative of research.The case study found that,first,the motivation for HN Group to issue carbon-neutral green bonds can be analyzed based on the theory of sustainable development,the theory of prioritized financing,and the theory of corporate reputation.In general,the issuance of carbon-neutral green bonds is a strategic need of the company’s development,which can obtain low-cost funds for the company’s clean project construction,which is beneficial to the company’s good image to a certain extent.In addition,the green transformation of the power industry and the support of related policys are important reasons for the company to issue this bond.Second,HN Group can achieve an effective combination of stock price effect,financial effect,environmental effect and reputation effect by issuing this carbon neutral green bond.The issuance of the first phase of carbon neutral green bonds by HN Group in 2021 can generate excess returns on the share prices of its subsidiaries to a certain extent in terms of stock price effect;in terms of financial effect,it can achieve a maximum reduction of financing cost of about 28 million.The issuance has little impact on the capital structure and solvency of HN Group;in terms of environmental effects,it can achieve carbon emission reduction of 453,600 t/a,smoke emission reduction of 22.83t/a,sulfur dioxide emission reduction of 112.35t/a,and nitrogen oxide emission reduction.117.16t/a and saving 184,100t/a of standard coal.By monetizing the environmental effect,the current bond can achieve an economic income of about 20.262 million yuan per year;in terms of reputation effect,the issuance of this bond can bring "green" reputation to the company and help HN Group’s reputation improve.Thirdly,through the case analysis of HN Group’s issuance of the current carbon-neutral green bond,it is found that the carbon-neutral green bond still has the problems of ununified issuance related standards,imperfect information disclosure system and low market recognition.Based on the above conclusions,in order to guide the expansion of the carbon-neutral green bond market and promote the development of the carbon-neutral green bond market,policy makers should improve the incentive mechanism for carbon-neutral green bond issuance,standardize relevant standards for carbon-neutral green bond issuance,and promote the cultivation of compound professionals.The tripartite institutions should strengthen self-discipline management,set up quantitative indicators for evaluation and certification,and cultivate and introduce professional talents to improve the business ability of evaluation and certification.