The issuance of convertible bonds will generally suppress the stock price before the issuance (which will not be explained in detail here), which is very bad for the stock price.
The impact of issuing general corporate bonds on stock prices is limited, far less than that of convertible bonds. But whether it is good or bad depends on the purpose of issuing bonds. It is definitely good to expand business. Because of financial problems, it is not good to rob Peter to pay Paul.
But there are two issues that need further consideration:
1: If a normal company has insufficient cash flow or has operational problems, it will make up reasons instead of directly announcing the issuance of new debts to repay old debts. This is normal logic. Moreover, there are several reasons to use it. The announcement directly says "borrowing the new and returning the old", which is estimated to have ulterior motives.
2. Housing enterprises, real estate industry background, the average debt ratio of industry companies is above 70%, which is the industry background. In this context, it becomes reasonable to consider the long-term financing needs and the phased borrowing of new and old.
3. Not all enterprises can issue corporate bonds, and not all enterprises can issue corporate bonds with a maturity of 10 year, which shows that this company has strong strength and good fundamentals. Pay special attention to the following contents: the old debt is two corporate bonds with a term of 5 years, and the new debt is a 10/corporate bond with a large amount. Brothers, have you found that the credit limit has increased and the life span has been lengthened?
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.
The funds raised by the public offering of corporate bonds must be used for the purposes listed in the Measures for Raising Corporate Bonds; Any change in the use of funds must be decided by the bondholders' meeting. The funds raised from the public offering of corporate bonds shall not be used to cover losses and unproductive expenditures.