Case Analysis Of Shengshi Rongdi Automobile Mortgage Loan Green ABS

In recent years,against the backdrop of energy security,climate change,and industrial upgrading,the new energy vehicle industry has developed rapidly driven by policy and market demand.In order to expand the scale and seize the market,China’s new energy vehicle enterprises actively seek various financing tools.Among many financing tools,green asset securitization is favored by automotive financial service companies due to its combination of the advantages of green bonds and asset securitization.In the past two years,the market scale of automotive mortgage green asset backed securities has expanded rapidly.This article adopts various research methods and selects the "Shengshirongdi 2021 Phase II Auto Mortgage Loan Green Asset Backed Securities" issued by BYD Auto Finance Co.,Ltd.,a subsidiary of BYD Group,as the research object to analyze and evaluate its financing motivation,issuance scheme design,and issuance efficiency.This article first introduces the reasons for choosing this case,followed by a brief description of the basic situation of BYD Auto Finance Co.,Ltd.and the issuance plan of the securities.Then,it analyzes the issue motivation of the case from the perspective that issuing green ABS can revitalize existing assets,expand the size of BYD’s auto market,and obtain policy support.Then,it analyzes the underlying asset quality,credit enhancement measures The overall analysis of the issuance plan of the case is conducted in terms of cash flow and income distribution mechanism.Finally,the issue effect of this case is explored from three aspects: financing cost,environmental benefits,and social impact.After the above argumentation,this article finds that the quality of the pooled assets of "Shengshi Rongdi 2021-2" is high,actively seeking green certification and credit enhancement,and the safe and stable cash flow can ensure the repayment of principal and interest.The design of the issuance plan is relatively reasonable.In terms of issuance efficiency,"Shengshi Rongdi 2021-2" has significant financing cost advantages,and its characteristics of green attributes not only have a good environmental impact,but also improve the positive image of BYD Auto Finance Co.,Ltd.,creating value for it as an intangible asset that is difficult to imitate and replicate,increasing the company’s value.Therefore,in order to better promote the development of the green asset securitization market,this article believes that green enterprises should highlight the green attributes of products when issuing green asset securitization,improve product recognition,reduce concentration risk,improve the quality of basic assets,and take external credit enhancement measures to reduce risks.At the policy level,the construction of carbon trading centers should be accelerated,and the green bond information disclosure system and green bond certification and evaluation system should be improved.