Discussion On The Motivation And Effect Of BYD’s Issuance Of Green Bonds

As the issue of environmental pollution becomes increasingly prominent and the concept of sustainable development is deeply rooted in the hearts of the people,the government and people are increasingly paying attention to environmental protection and encouraging everyone to create a green home together.In terms of energy conservation and emission reduction,compared to traditional energy,clean energy and green transportation have become the preferred choices for enterprises and people to travel.In September 2020,China made a "double carbon" commitment to the people of the world at the United Nations General Assembly to achieve carbon peak by 2030 and carbon neutrality by 2060,which means that accelerating the upgrading of industrial structure and promoting the development of green industries has become an inevitable trend in the market.From the perspective of the attributes of green finance,the continuous improvement of the green financial system not only leverages more capital to invest in green industries,but also can better support the modernization construction of harmonious coexistence between human beings and nature.In addition,as a new financing tool,green bonds have become an important component of green finance,and play an important role as a financial lever in promoting the economic development of green industries.Green bonds have been labeled "green",which is different from traditional financing methods.They not only have a tax shield effect,but also have a green and environmentally friendly nature.They can not only reduce financing costs,but also directly guide the flow of funds to projects with good environmental benefits.This article believes that it is worth exploring how to attract more large and medium-sized enterprises to issue green bonds,promote the comprehensive development of China’s bond market in practice,and accelerate the construction of a green financial system.Green bonds are a new type of financing tool that started relatively late in China,with the first green bond issued in 2016.However,China is already a major issuer of green bonds in the world and has certain research prospects.From a research perspective,current research on the effects of green bond issuance by domestic and foreign scholars mainly focuses on the stock price and market reflection of green bonds,while there are few studies on the internal operation and social impact of enterprises.From the perspective of issuers,most of the enterprises that issue green bonds in China are also state-owned enterprises and financial institutions,while most private enterprises and non-financial institutions lack initiative in issuing green bonds.In terms of the new energy vehicle industry,currently only BAIC Motor Corporation Limited and BYD have issued two green bonds in China,with fewer companies issuing green bonds and only BYD is a private enterprise.Based on this,this thesis adds the perspective of corporate strategic transformation and environmental benefits,and analyzes the effects of green bond issuance by enterprises from a specific case perspective.Therefore,this thesis believes that the changes before and after the issuance of green bonds by enterprises have certain practical significance and research value.This thesis analyzes the two green bonds issued by BYD,"18 BYD Green Bond 01" and "19 BYD Green Bond 01",mainly uses the case analysis method to analyze the reasons for the issuance of BYD’s green bonds,and discusses the effect of BYD’s issuance of green bonds.First of all,this article introduces the basic information and relevant background of BYD,and sorts out the process of issuing green bonds by BYD and the main information of the bonds.Subsequently,this thesis analyzes the motivation of BYD’s issuance of green bonds,arguing that BYD’s issuance of green bonds is not only driven by internal motives but also affected by the external environment,and its main purpose is to meet the company’s current capital needs.Third,this thesis discusses the effects of BYD’s issuance of green bonds,including three aspects: financial,operational and environmental.By comparing BYD’s financial indicators,R&D and innovation investment,and energy consumption before and after the issuance of green bonds,this thesis summarizes the relevant information,and argues that the issuance of green bonds has certain positive effects on enterprises’ financial performance,cost control,strategic transformation and green environmental protection.Finally,based on the above analysis,this thesis draws corresponding conclusions and enlightenments,mainly including the following three conclusions: 1.BYD’s financial effect is significant under the dual influence of green funds and government subsidies;2.The issuance of green bonds will help BYD establish a green image and promote BYD’s green transformation;Third,BYD’s own management level and information disclosure ability need to be improved.At the same time,it is revealed from the case study that enterprises can make full use of the current policy advantages,issue green bonds based on their own conditions,increase green investment,and do a good job in follow-up information disclosure.