SHENZHEN, Jan. 24 (Xinhua) -- Chinese leading electric vehicle maker BYD is issuing 1 billion yuan (146.9 million U.S. dollars) green bonds to finance its business expansion.
The fund will be used to finance its green industry projects, including new energy vehicle factories, parts and batteries plants and monorail business, the Shenzhen-based BYD said Thursday.
The projects will have very good social and economic benefits, it said.
Half of the funding will go to a lithium battery plant in Qinghai Province and two parts plants in the cities of Shanwei and Wuhan, it said.
The other half will be used to supplement its working capital, BYD said.
The bonds are scheduled to start trading on the Shenzhen Stock Exchange next Tuesday.
BYD entered the auto manufacturing business in 2003 and now has four automobile industrial bases in Shenzhen, Xi'an, Beijing and Changsha.
China has encouraged the use of new energy vehicles to ease pressure on the environment by offering tax exemptions and purchase subsidies.
Bucking the downward trend in the broader auto market, sales of new energy vehicles soared last year, seeing a 61.74 percent year-on-year growth to 1.26 million units, according to the China Association of Automobile Manufacturers.
