Research On The Motivation And Effect Of BYD Issuing Green Bonds

Since the reform and opening up,with the rapid development of the economy and society,the problem of environmental pollution and ecological damage in China has increasingly emerged,which has become a prominent shortcoming of economic and social development.In order to change the current situation,the country has proposed to establish a green,low-carbon cycle development of the economic system and a clean,low-carbon,safe and efficient new energy system.The new energy vehicle industry,as a new industry born in a low-carbon context,is an important strategic industry for the country to cope with global warming and resource depletion.Technological innovation and research and development are not only central to the new energy vehicle industry,but also the way to sustainable green and healthy development of new energy vehicles in the future.Therefore,as a new type of financing method,green bonds can not only meet the needs of enterprises to raise funds,but also accelerate the green transformation and upgrading of enterprises,create a green brand image and improve their social reputation.If new energy automotive enterprises can make good use of green bonds,then the problem of difficult financing and single financing channel in the new energy automotive industry will be effectively solved.Therefore,it is necessary to study the motives for issuing green bonds in the new energy automotive industry and the actual effects produced.This paper takes BYD,a leading company in the new energy vehicle industry,as the research object and focuses on the motivation and effect of its green bond issuance.The background,research methodology and theoretical basis of this paper are firstly explained,followed by a review of the research results at home and abroad to understand the current status of green bonds research.Secondly,the situation of BYD’s industry,the issuance of green bonds and the use of funds raised are introduced.Next,the internal and external motivations for BYD to issue green bonds are studied using comparative analysis and combined with BYD’s own strategic objectives,and it is concluded that BYD’s issuance of green bonds can alleviate financing mismatches,reduce financing costs and enhance the green image of the company.Then,the effects of BYD’s green bond issuance are explained in terms of five aspects: share price,economy,society,environment and finance,using factor analysis and event analysis.Finally,the findings of BYD’s green bond issue are summarised in the light of the above analysis,and suggestions and guidance are provided for the issuance of green bonds in the new energy vehicle industry from the perspective of enterprises to promote the prosperous development of China’s green bond market.This paper concludes that BYD’s issuance of green bonds is mainly due to four main internal reasons,including the need for strategic development,mitigation of financing maturity mismatch,gaining green reputation and the need for green project funding.This article adopts a case study method to analyze the impact of BYD’s green bond issuance,filling the gap in specific research cases of green enterprise bond issuance in the new energy vehicle industry.It also provides guidance for new energy enterprises to explore new low-cost financing models to a certain extent,and promotes the prosperity of the domestic green bond market.