I. Definition and use of urban investment bonds and industrial bonds:
(1) Urban investment bonds:
1, definition:
Urban investment bonds, also known as "quasi-municipal bonds", are local investment and financing platforms for publicly issuing corporate bonds and medium-term notes, and their main businesses are mostly local infrastructure construction or public welfare projects.
2. Function:
Urban investment bonds are defined by the issuer, covering most corporate bonds and a small number of non-financial corporate debt financing instruments. Urban investment bonds are mainly issued for investment purposes such as urban infrastructure.
3. Specific uses:
Generally speaking, urban investment bonds refer to bonds issued by local financing platforms, that is, bonds issued by various urban investment companies, highway companies, road and bridge companies and water companies, which can generally be called urban investment companies.
(2) Industrial bonds:
1, definition:
Industrial debt refers to the credit debt after excluding urban investment debt.
2. Nature:
Compared with urban investment bonds, industrial bonds have the characteristics of strong self-management ability, strong profitability and cash flow generation ability, weak dependence on government and policies, relatively weak influence by monetary policy and macroeconomic environment, good risk and return, and can also avoid sensitive issues such as local government debts.
Second, the difference between urban investment bonds and industrial bonds:
1, industrial bonds are bonds issued by general industrial and commercial enterprises, which are used in real estate, steel, energy and electricity.
2. Urban investment bonds are issued by local investment and financing platforms for urban infrastructure.
Three. Conditions and procedures for issuance:
(1) Conditions for issuing urban investment bonds:
1. The net assets of joint-stock companies are not less than 30 million yuan, and the net assets of limited liability companies and other types of enterprises are not less than 60 million yuan;
2. The accumulated bond balance shall not exceed 40% of the net assets of the enterprise (excluding minority shareholders' rights and interests);
3. The distributable profit (net profit) in the last three years is enough to pay the interest of corporate bonds for one year;
4. The investment of raised funds conforms to the national industrial policy and the development direction of the industry, and the relevant procedures are complete. For fixed assets investment projects, it should meet the requirements of the capital system of fixed assets investment projects, and in principle, the cumulative issuance amount shall not exceed 60% of the total project investment. The proportion shall apply mutatis mutandis to those who have acquired property rights (shares). If it is used to adjust the debt structure, it is not limited by this ratio, but the enterprise should provide proof that the bank agrees to repay the loan with debt; Used to supplement working capital, not exceeding 20% of the total amount of bonds issued;
5. The bond interest rate shall be determined independently by the enterprise according to the market situation, but it shall not exceed the interest rate level stipulated by the State Council (not higher than 40% of the bank savings time deposit interest rate in the same period);
6. There is no default or delay in servicing the issued corporate bonds or other debts;
7. There have been no major violations of laws and regulations in the last three years.
(2) The basic operation process of urban investment bond financing is as follows:
1. Preparation of application materials.
The lead underwriter makes a complete set of application materials and distribution plans, and forms an underwriting syndicate.
Guarantee institutions issue letters of guarantee.
Audit institutions have issued audit reports for the past three years.
The lawyer issues a lawyer's work report.
Credit rating agencies issue credit rating reports.
2. Apply for approval.
Report the issuance materials to the National Development and Reform Commission through the local development and reform commission (or directly).
The National Development and Reform Commission will sign with the People's Bank of China and China Securities Regulatory Commission to approve the issuance of bonds.
3. Bond issuance.
Submit issuance approval documents and other materials to China Debt Board and the Exchange, and arrange issuance registration.
Publish a bond issuance announcement or prospectus in the media.
Corporate bonds are officially issued and underwritten by members of the underwriting syndicate organized by the lead underwriter.
(3) Conditions for issuing industrial bonds:
1. It has been profitable for three consecutive years before issuing bonds, and the use of raised funds conforms to the national industrial policy.
2. The accumulated bond balance shall not exceed 40% of the company's net assets; The average distributable profit in the last three years is enough to pay the interest of corporate bonds for one year.
3. Where bonds are issued for technological transformation projects, the total amount of issuance shall not exceed 30% of the total investment; Infrastructure projects do not exceed 20%.
4. Obtain the decision of the company's board of directors or SASAC to apply for issuing bonds.
Four, the convergence of urban investment bonds and industrial bonds:
There is no direct connection between them. If you have to say it, you can call it a credit bond, which is to distinguish it from national debt and financial debt. Of course, many times, some city investment bonds can also be classified as local government bonds, and there are many overlapping concepts.