A Case Study On The Motivation And Performance Of BYD Issuing Green Bonds

BYD Company Limited,as the earliest independent auto brand for the development of new energy vehicles,no matter from the viewpoint of technology research and development and market share in the new energy automotive industry leading position,BYD is also the first in our country traditional auto enterprise,green bonds issued green bonds is the transformation of the traditional auto industry one of the best financing options.In the process of achieving carbon peak and carbon neutrality,it is essential for the real economy to comprehensively innovate supporting measures such as finance,fiscal and taxation,while green bonds are favored by enterprises due to their low interest rate and simple approval process.At the same time,the restrictions on the use of green bond funds and the green evaluation by third-party institutions not only restrict the use of green funds by enterprises,but also attract a large number of investors’ attention to enterprises,establish the image of green environmental protection enterprises,and respond to the national call of "Low-carbon Transport and to Protect the Environmental".Therefore,taking BYD as the research object has certain representativeness and reference significance.Papers in retrieval and review on the new energy automotive industry at home and abroad financing model,the motivation and effect of listed companies issuing bonds green aspects of literature,on the basis of green bonds in the application of traditional auto industry transformation,with new energy automotive industry leading enterprises BYD as the research object,to explore the motivation of green bonds it issues and practical effect.This paper discusses that the main motivation of BYD to issue green bonds is to help the green economic transformation of the enterprise,to achieve its strategic goal of "becoming an energy storage expert in the field of new energy",to improve its financing structure,to broaden financing channels and to establish the green image of the enterprise;The positive effect of BYD’s green bond issuance approval announcement was verified by using the event study method,which improved the market value of BYD in the short term.This paper analyzes the financial performance of BYD’s green bonds in the short term.In the era of the new energy boom,its growth ability is excellent.Due to its wide and long industrial chain,indicators such as profitability,debt paying ability and operating ability have improved but not significantly in the whole industry;It reveals the exemplary and leading role of BYD’s issuance of green bonds,which meets the national requirements for the transformation of the auto industry and proves that BYD’s R&D with "green capital" has economic and social benefits.In view of the above research conclusions,this paper puts forward relevant countermeasures and suggestions for BYD,such as factors of reasonable design of green bonds,improving information disclosure of green bonds and strengthening risk identification.