Legal analysis: As a capital market tool and a long-term financing channel, corporate bonds must have a term of more than one year, including the duration of corporate bonds and the interest payment period of corporate bonds. Corporate bonds refer to securities issued by the company in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time. Corporate bonds are the manifestations of corporate bonds. Based on the issuance of corporate bonds, a legal relationship of creditor's rights and debts is formed between bondholders and issuers with the content of repaying principal and interest. Therefore, corporate bonds are debt certificates issued by companies to bondholders.
Legal basis: Article 15 of the Securities Law of People's Republic of China (PRC) shall meet the following conditions for public issuance of corporate bonds:
(1) Having a sound organizational structure;
(2) The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year;
(3) Other conditions stipulated by the State Council.