1. Obtain funds: Issuing bonds can provide funds for the company and help it expand its scale and investment. Compared with stock financing, bond financing is more stable and will not dilute the rights and interests of existing shareholders;
2. Reduce financial risks: bonds usually have a fixed interest rate and maturity date, which enables companies to better plan financial budgets and manage financial risks. In addition, compared with bank loans and other financing methods, bond financing is more flexible and independent;
3. Enhance credibility: issuing bonds can increase the company's popularity and reputation in the capital market, show investors the company's financial status and operating ability, and improve market recognition and investment value;
4. Optimize the capital structure: Issuing bonds can optimize the company's capital structure and make it more balanced and stable. Compared with equity financing, bond financing can reduce the company's financial leverage, reduce the company's financial risks, and also help to improve the company's equity value and return on investment;
5. Optimize the ownership structure: bond financing can reduce the financial leverage of the company and reduce the dilution of equity, thus avoiding some potential conflicts of shareholders' interests and conflicts between management and shareholders;
6. Expand the investor base: issuing bonds can attract more institutional investors and individual investors, expand the investor base and market coverage of the company, and create more opportunities and conditions for the company's future capital market activities and financing;
7. Increase market liquidity: Bond financing can create more trading liquidity and market value for the company, improve the competitiveness and influence of the company in the capital market, and then promote the company's long-term development and value creation.
Legal basis:
Article 9 of the Securities Law of People's Republic of China (PRC)
The public offering of securities must meet the conditions stipulated by laws and administrative regulations, and shall be reported to the securities regulatory agency of the State Council or the department authorized by the State Council for registration according to law. Without legal registration, no unit or individual may publicly issue securities. The specific scope and implementation steps of the securities issuance registration system shall be stipulated by the State Council.
In any of the following circumstances, it is a public offering of shares:
(1) Issuing securities to unspecified objects;
(2) More than 200 people have issued securities to specific objects, but the number of employees who have implemented the employee stock ownership plan according to law is not included;
(3) Other issuance acts as stipulated by laws and administrative regulations.
Non-public issuance of securities shall not be carried out by advertising, public persuasion or disguised publicity.