There are many bond issuing companies, and any qualified enterprise can issue its own corporate bonds and get a lot of financial support. Corporate bonds need to be approved by relevant departments before they can be issued, but who will approve corporate bonds? Do you know this? The issuance process and system of corporate bonds are very strict, and bonds can only be issued as required. Details can be found in this article.
1. Who usually approves corporate bonds?
When a listed company issues corporate bonds, it shall report to the the State Council Securities Regulatory Authority for approval.
Second, the issuance process of corporate bonds
Make a resolution or decision
When a joint stock limited company or a limited liability company issues corporate bonds, the board of directors shall formulate a plan and the shareholders' meeting shall make a resolution; The issuance of corporate bonds by a wholly state-owned company shall be decided by the state-authorized investment institution or the state-authorized department.
2. Apply for issuance
After a company makes a resolution or decision to issue corporate bonds, it must submit the required application documents to the department authorized and approved by the State Council in accordance with the conditions stipulated in the Company Law, and the submitted application documents must be true, accurate and complete. The application documents submitted to the authorized department of the State Council include: company registration certificate and articles of association. Measures for raising corporate bonds, asset evaluation report and capital verification report.
3. Approve the issuance of corporate bonds
The department authorized by the State Council is responsible for approving the issuance of corporate bonds in accordance with legal conditions, and the department shall make a decision within three months from the date of accepting the application documents for corporate bond issuance; If it is not approved, it shall explain the reasons.
4. Announcement of raising methods
After the application for issuing corporate bonds is approved, the measures for raising bonds shall be announced; The measures for raising funds shall specify the following items:
(1) company name;
(2) The total amount of bonds and the par value of bonds.
(3) Bond interest rate.
(4) The time limit and method for repaying the principal and interest;
(5) the commencement and termination dates of bond issuance.
(6) The net assets of the company.
(7) The total amount of corporate bonds issued but not yet due.
(8) Corporate bond underwriting institutions.
5. Matters specified in corporate bonds
When issuing corporate bonds, the company name, face value, interest rate, repayment period and other matters must be stated on the bonds, which shall be signed by the chairman and sealed by the company.
Three. Examination and approval procedures for issuing corporate bonds
Enterprises need to go through two stages of quota review and qualification review when issuing bonds:
1. quota review procedure. The review of the amount of corporate bonds applied for shall go through the following links:
(1) Before issuing bonds, the issuer must apply to the competent department of the industry, and only after the formal approval and recommendation of the competent department of the industry can it apply for issuing bonds;
(2) The competent department of the enterprise shall declare the allocation quota to PBC branch and the Planning Commission of the province, autonomous region, municipality directly under the Central Government or cities under separate state planning;
(3)PBC Branch and the Planning Commissions of provinces, autonomous regions, municipalities directly under the Central Government or cities under separate state planning * * * prepare the annual issuance plan of local national corporate bonds and submit it to the head office of China People's Bank and the State Planning Commission for review;
(four) the head office of the People's Bank of China and the State Planning Commission shall, according to the issuance plans declared by various localities, prepare the annual issuance plan of national corporate bonds and report it to the State Council for approval;
2. Qualification examination procedure: After the company obtains the bond issuance quota, it shall submit relevant application documents to the the State Council securities management department which has the right to examine the issuance application. The issuance of corporate bonds by central enterprises shall be examined and approved by the People's Bank of China in conjunction with the State Planning Commission; The issuance of corporate bonds by local enterprises shall be examined and approved by the branches of the People's Bank of China in provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning in conjunction with the planning management departments at the same level.
Securities associations are generally responsible for the approval of bonds, and the approval process is very strict. Any incomplete materials and vague information will be returned. The reason why it is so strict is to ensure the stability of the bond market order, at the same time to ensure that the interests of bondholders are protected, and to create a good bond investment environment for everyone.