What are the conditions for issuing corporate bonds?

1. What are the conditions for issuing corporate bonds? (1) The net assets of a joint stock limited company shall not be less than RMB 30 million, and the net assets of a limited liability company shall not be less than RMB 60 million; (2) The accumulated bond balance shall not exceed 40% of the company's net assets; (3) The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year; (4) The investment of the raised funds conforms to the national industrial policy; (5) The bond interest rate shall not exceed the interest rate level stipulated by the State Council; (six) other conditions stipulated by the State Council. In addition, the funds raised by issuing corporate bonds must be used for approved purposes, and shall not be used to make up for losses and unproductive expenditures. Under any of the following circumstances, the company bonds may not be issued again: (1) The company bonds previously publicly issued were not fully raised; (2) The fact that the company defaults on the issued corporate bonds or its debts or delays the payment of principal and interest is still in a continuous state; (three) in violation of the provisions of the Securities Law, change the use of funds raised by the public offering of company securities. Second, the characteristics of bonds issued by the company (1) repayment. Bonds generally have a repayment period, and the issuer must repay the principal and interest according to the agreed conditions. (2) liquidity. Bonds are generally freely convertible in the circulation market. (3) Safety. 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. (4) 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. III. Definition of Corporate Bonds Corporate bonds refer to securities issued by a 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. It can be seen that the first thing that these companies want to issue bonds must be that the company's net assets have accumulated to a certain extent. Moreover, although it is beneficial to the operation of the company in the market after issuing bonds, it also increases the economic burden of the company to a certain extent. If we don't look at the company's profit, it is difficult to guarantee that the company may not be able to bear these consequences after issuing bonds.