Research On The Motivation And Effect Of BYD Issuing Green Bonds

After the reform and opening up,China’s economic growth is rapid,but also accompanied by serious energy consumption,environmental deterioration and other problems.At present,the Chinese government attaches more and more importance to environmental protection and sustainable development.In September 2020,the "3060" carbon peak carbon neutral goal was proposed.Under this strategic background,the traditional automobile industry tends to green transformation and vigorously research and develop and produce new energy vehicles.Enterprises need sufficient financial support for green technology innovation.Green bonds as an important branch of green finance,have the advantages of low cost and tax shield.At the same time,they have a more flexible issuance period and a more strict green information disclosure system,which can open a new door of financing for the new energy vehicle enterprises.This paper takes BYD Company as the research object,adopts the method of combining qualitative and quantitative research to study and analyze the motivation and effect of its "19 Yadi G1" green bond.First,it briefly introduces the background of BYD green bond issuance,as well as the relevant information of "19 Yadi G1" green bond;Secondly,the paper analyzes the motivation for BYD to issue green bonds,and studies the social effect,financial effect,stock price effect and the effect on corporate green technology innovation.Finally,summarize,draw conclusions and give appropriate suggestions.Through research,this paper finds that the main motivations for BYD to issue green bonds are as follows: green bonds can meet corporate capital needs,reduce corporate financing costs,enhance corporate green reputation,as well as the vigorous development of domestic green bond market and the progress and support of domestic cultural environment.The issuance of "19 Yadi G1" green bond enhanced the profitability of BYD,improved the debt structure and debt paying ability,promoted the stock price,helped BYD to form a green reputation,played a positive role in promoting green technology innovation,and contributed to the long-term sustainable development of BYD.Finally,this article puts forward suggestions from three aspects: enterprise,market and regulation,hoping to provide appropriate reference for BYD and its peer enterprises to issue green bonds in the future,so as to maximize the effect of green bonds to help sustainable development of enterprise,but also hopes to contribute to enterprise green technological innovation and the development of our country’s green bond market.