Study On Economic Effect And Credit Risk Of Green Bonds Issued By New Energy Vehicle Industry ——A Case Study Of BYD

To achieve a balance between economic development and the ecological protection,China is actively building a green,low-carbon and circular economy.As a major component of green finance,green bonds can effectively help the development of China’s green industry and guide capital flowing to the energy conservation and environmental protection sectors.As one of the largest countries for automobile production and sales globally,China is facing environmental pollution and ecological infringement caused by the traditional automobile industry.The emergence of new energy vehicles has provided a new idea for harmonizing economic development and environmental production.However,new energy vehicle enterprises need substantial funding for market development and technological research and development.Finding an available financing channel to support the new energy vehicle sector is a big challenge that the industry is facing.Therefore,this paper studies the economic effect and credit risk of "green bond financing",which can effectively help relevant enterprises to broaden financing channels and meet financing needs,so as to promote the development of new energy automobile industry.This paper takes "Green bonds to promote the development of new energy vehicle industry" as the research theme.Using BYD Group,a leading new energy vehicle enterprise in China,as the research object to study the two green bonds（18Yadi Green Bond 01 and 19 Yadi Green Bond 01）issued by the Group.Specifically,this paper firstly summarizes the basic situation of China’s green bond market and new energy vehicle industry.After that,a brief introduction to BYD was made,and the green bonds issued by the group were sorted out to clarify the process of green bond issuance and the nature of successful issuance,as well as explore the reasons for green bond issuance.Finally,the economic effects of green bonds issued by BYD is studied from the aspects of debt structure,financing cost,growth level and repayment ability.Moreover,Z-Score model and KMV model are selected to assess the credit risks when BYD issues green bonds.The research results show that green bond is a key financing instrument for new energy vehicle enterprises.Issuing green bonds can effectively reduce the financing cost of the enterprise investigated,improve the debt structure,and enhance its growth level and repayment ability.Moreover,the credit risk of green bond duration remains at a low level.Based on the results,from the perspectives of bond issuers and market managers,this paper draws the following conclusion: enterprises in the new energy automobiles industry should strengthen the information transparency of green bond,reasonably design the elements of green bond,maintain a good connection with related policy,and establish a green bond risk warning mechanism.Market managers should improve their market supervision mechanism,optimize policy subsidy schemes,expand the ranks of green investors and strengthen third-party certification.The findings of this paper could provide reference and valuable information for the development of the green bond market and new energy vehicle enterprises to issue green bonds in China.