The conditions for public issuance of bonds are 1, the net assets of joint stock limited companies are not less than RMB 30 million, and the net assets of limited liability companies are not 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 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;
6. Other conditions stipulated by the State Council.
The funds raised by the public offering of corporate bonds must be used for approved purposes, and shall not be used to cover losses and unproductive expenditures.
When a listed company issues corporate bonds that can be converted into shares, it shall not only meet the conditions stipulated in the first paragraph, but also meet the conditions for public offering of shares in this Law, and report to the the State Council Securities Regulatory Authority for approval.
The difference between public offering bonds and private placement bond 1. Bonds issued to an unspecified majority of investors need to go through legal procedures and can be transferred in the securities market.
2. private placement bond is a bond issued to specific investors, and its issuance and transfer have certain limitations. Private placement bond's issuance procedure is simple, so it can't be traded in the securities market.
Factors to be considered in issuing public bonds 1. Issue amount. Bond issuance refers to the total amount of funds expected to be raised by bond issuers when they issue bonds at one time. Enterprises should make a comprehensive judgment according to their own credit status, capital demand, market capital supply and the attractiveness of bonds, and determine the appropriate issuance quota. If the issuance rating is too high, it will lead to sales difficulties: the issuance quota is too small to meet the financing needs.
2. The face value of the bonds. The face value of a bond is the amount indicated on the bond system. Enterprises can diversify the face value of bonds according to the needs of different subscribers, including large face value and small face value.
3. Bond term. The period from the date of issuance of bonds to the date of repayment of principal and interest is called bond term. Enterprises usually determine the term structure of issuing bonds according to the term of capital demand, the trend of future market interest rate, the developed degree of circulation market, the term of other bonds in the bond market and the preference of investors. Generally speaking, when the capital demand is large, the bond circulation market is developed and the interest rate is on the rise, medium and long-term bonds can be issued, otherwise short-term bonds should be issued.
4. The repayment method of bonds. According to the different repayment dates of bonds, the repayment methods of bonds can be divided into maturity repayment, interim repayment and deferred repayment, or early redemption and non-early redemption; According to the different forms of bond repayment, it can be divided into currency repayment, bond repayment and stock repayment. Enterprises can make flexible decisions according to their actual situation and the needs of investors.
5. coupon rate and coupon rate can be divided into fixed interest rates and floating interest rates. Generally speaking, enterprises should decide which interest rate form and level to choose according to their own credit status, the company's affordability, the trend of interest rate change and the length of bond term.
6. Interest payment method. Interest payment methods can generally be divided into one-time interest payment and installment interest payment. Enterprises can determine different interest payment methods according to the maturity of bonds, financing cost requirements, attractiveness to investors, etc. For example, medium and long-term bonds can be paid in installments, annual, semi-annual or quarterly, and short-term bonds can be paid in one lump sum.
Conditions for issuing public bonds