The Impact of Credit Rating on Pricing of Green Bond Issues - An Empirical Analysis Based on the TIC Model

Abstract

As an important part of green finance, green bonds have become more and more obvious in the market, and their pricing has received more and more attention. As an important factor affecting bond pricing, it is necessary to explore the impact of credit rating on the pricing of green bond issues. This paper focuses on exploring the impact of credit rating on the pricing of green bond issuance by empirically analyzing the data of some green bonds issued in 2018-2022, and finds that: the credit rating of green bonds has a significant impact on their issuance interest rate, and the higher the credit rating, the lower the financing cost of green bonds; the issuance period, the issuance scale and the whether to set up the put provision and the call provision also affect the financing cost of green bond.