Conditions for issuing corporate bonds
According to the relevant provisions of the Securities Law, the Company Law and the Pilot Measures for the Issuance of Corporate Bonds, the issuance of corporate bonds shall meet the following conditions:
1. The net assets of a joint stock limited company shall not be less than 30 million yuan, and the net assets of a limited liability company shall not be less than 60 million yuan;
2. The accumulated balance of corporate bonds after this issuance shall not exceed 40% of the net assets at the end of the latest period; The accumulated corporate bond balance of financial companies is calculated according to the relevant provisions of financial companies;
3. The company's production and operation comply with the provisions of laws, administrative regulations and the company's articles of association, and the investment of raised funds conforms to the national industrial policy;
4. The average annual distributable profit realized in the last three fiscal years shall not be lower than the interest of corporate bonds 1 year;
5. The bond interest rate shall not exceed the interest rate level stipulated by the State Council;
6. The company's internal control system is sound, and there are no major defects in the integrity, rationality and effectiveness of the internal control system;
7. The credit rating agency has a good credit rating on the bond.
Non-issue condition
Under any of the following circumstances, the company may not issue corporate bonds:
1. The previous public offering of corporate bonds has not been fully raised;
2. The fact that the company breaches the contract or delays the payment of the principal and interest of the issued corporate bonds or other debts is still in a continuous state;
3. In violation of regulations, change the use of funds raised by public offering of corporate bonds;
4. There are false records in the financial accounting documents of the company in the last 36 months, or the company has other major illegal acts;
5. There are false records, misleading statements or major omissions in the application documents for this issuance;
6. Other circumstances that seriously damage the legitimate rights and interests of investors and the interests of the public.
According to the provisions of Article 16 of the Securities Law, the funds raised by public offering of corporate bonds must be used for approved purposes, and shall not be used to cover losses and unproductive expenditures.
Characteristics of issuing bonds
As an important means of financing and financial instruments, bonds have the following characteristics:
repayment
Bonds generally have a repayment period, and the issuer must repay the principal and interest according to the agreed conditions.
Transferability
Bonds are generally freely convertible in the circulation market.
safe
Compared with stocks, bonds usually have a fixed interest rate, which is not directly related to the performance of enterprises, with relatively stable returns and less risk. In addition, when the enterprise goes bankrupt, the bondholder's claim for the remaining property of the enterprise has priority over the stock holder.
profitability
The profitability of bonds is mainly manifested in two aspects: first, investing in bonds can bring interest income to investors regularly or irregularly; Second, investors can use the changes in bond prices to buy and sell bonds to earn the difference.
Bond market bond issuance market-overview and classification of the primary bond issuance market; The bond issuance market is mainly composed of issuers, subscribers and entrusted underwriting institutions. As we said before, as long as you are qualified to issue bonds, no matter the country, government agencies and financial institutions, or companies, enterprises and other legal persons, you can borrow money by issuing bonds. Subscribers are the people we invest in, mainly social public organizations, enterprises and institutions, securities institutions, non-profit institutions, foreign state-owned enterprises and institutions and our families or individuals. Entrusted underwriting institutions are intermediaries that handle bond issuance and sales on behalf of issuers, mainly including investment banks, securities companies, commercial banks and trust and investment companies. There are three ways to issue bonds: public offering, private offering and underwriting.