Analysis On Financing Motivation And Benefit Of BYD Green Bond

In recent years,the problem of urban air pollution in China has become increasingly serious,and the green transformation of the automobile business has been strongly supported by China.With the vigorous development of the new energy automobile industry,enterprises continue to expand their operating scale and need to build more production projects.Due to the long construction period of new energy automobile industry projects and the large demand for project funds,the company’s own funds cannot meet the development needs,and it is necessary to find new financing channels to meet the construction needs.In the context of China’s vigorous promotion of green finance development,green bonds have become an important financing channel for enterprises.However,the number of green bonds issued by China’s new energy vehicle enterprises is very small,and enterprises lack the understanding of green bonds and the internal motivation to choose green bonds for financing.In this context,it is of great theoretical and practical significance to explore the motivation and benefits of green bond issuance.This paper first summarizes the research progress of green bonds by domestic and foreign scholars,and understands the current research on the causes and benefits of green bond issuance.At the same time,the case of BYD’s issuance of "19 Yad Green Bond 01" is introduced to analyze the external and internal motivations of enterprises choosing green bonds for financing,and what financing benefits the issuance of green bonds can bring to enterprises.When analyzing external drivers,it is concluded that enterprises may be affected by green bond policies and subsidies in their own industries.When analyzing the internal motivations,based on BYD’s own understanding of its own situation,it is concluded that BYD’s issuance of green bonds is to obtain funds for green projects,alleviate the mismatch of debt maturity,optimize its own financing structure,and reduce financing costs.Finally,through the change of relevant indicators,this paper analyzes the intrinsic impact mechanism of BYD’s issuance of green bonds and changes in financial indicators through qualitative and quantitative analysis,and studies the correlation between the issuance of green bonds and stock prices through the event research method,so as to judge whether the issuance of green bonds can bring benefits to enterprises.Based on the conclusion that green bond financing has more cost advantages than other financing methods,and can improve the financing efficiency of enterprises and bring positive financing benefits to enterprises,this paper provides countermeasures and suggestions for enterprises that need to issue green bonds from the perspective of enterprises that need to issue green bonds,so as to ensure that enterprises can sort out the issuance of green bonds,and promote the long-term development of the green bond market while meeting the needs of enterprises.