| Sustainable development is one of the important directions for China’s economy to achieve high quality development.The report of the 19 th Party Congress clearly points out that China’s economic development has shifted from the stage of high-speed growth to the stage of high-quality development.However,since the reform and opening up,under the domination of the development thinking centered on the pursuit of quantity and speed,China’s economy has developed rapidly,and the total economic volume,per capita income and living standard of residents have increased rapidly,however,the crude development model has also led to China paying a huge ecological and environmental cost.In recent years,as socialism with Chinese characteristics enters a new era,the main contradictions in the economy and society change and the new development concept is put forward,ecological and environmental issues are increasingly prominent.Under the guidance of this increasingly strengthened constraint and national sustainable development policy,transforming the development mode with sustainable development as the main line gradually becomes an important option for enterprises to achieve sustainable development.In this paper,the case study of "21 Yangtze Power MTN002(sustainability-linked)",a sustainability-linked bond issued by Yangtze Power,is selected to provide a reference for other companies to obtain financing by issuing sustainability-linked bond.Based on the case study,this paper analyzes the motivation of Yangtze Power ’s issuance of sustainability-linked bond.Based on the above analysis,the effects of the issuance of sustainability-linked bond by Yangtze Power are studied,mainly analyzing the financial effect,share price effect,environmental effect and governance effect of the bond issuance.The results of the study show that: firstly,the issuance of the first sustainability-linked bond by Yangtze Power is an innovation in bond varieties and has a positive financial effect on the company.After the issuance of "21 Yangtze Power MTN002(sustainabilitylinked)",the debt servicing ability,profitability and growth ability of Yangtze Power have been improved,except for the reduction of operating ability;secondly,after the issuance of "21 Yangtze Power MTN002(sustainability-linked)",the excess return of Yangtze Power’s share price only increased to a certain extent on the first and third days,which shows that the issuance of sustainability-linked bond had a positive effect on share price,but the effect was weak and short-lived;thirdly,the issuance of sustainability-linked bond will motivate enterprise to achieve the preset sustainability performance targets,promote the improvement of corporate governance,and use the funds raised from the issuance of bond for sustainable project operations,thus creating a positive environmental and governance effects.The value of this study is that,firstly,the case study on the issuance of sustainabilitylinked bond by Yangtze Power provides a reference for related research and application;secondly,from the perspective of financial risk management,it further clarifies the risk points of such bond and provides a basis for the risk management of corporate issuance of sustainability-linked bonds,as well as a reference for the professionalization and standardization of supervision by enterprises and government departments. |
