Separable convertible bonds are convertible corporate bonds issued by listed companies and traded separately. It gives listed companies two financing opportunities: one is to issue corporate bonds with warrants, which belongs to debt financing; Then, the warrant holder exercises the right during the exercise period or when it expires, which belongs to equity financing.
Separable debt is the latest refinancing method after the old and new are cut off. Based on the characteristics of convenient financing and low cost, market analysts believe that because it can meet the financing needs of listed companies, conforms to the development direction of the financial market and has great development potential, it will inevitably attract a large number of listed companies to try to use this financing method.
Separated convertible bonds are actually a combination of bonds and warrants, similar to separated bonds with warrants.
The main advantages of detachable convertible bonds of listed companies are as follows:
1. The issuance scale of single split convertible bonds is relatively large, which belongs to the current encouragement method of the CSRC, and it is easy to get the approval of the issuance meeting;
2. After the equity certificate is given, the debt financing cost of separating convertible bonds is lower, which shows that more than half of the life of separating bonds is 6 years;
3. Compared with the traditional convertible bonds, the premium of the exercise price of warrants is generally higher, and the premium of Tangshan Iron and Steel and WISCO is as high as 20%, which reduces the cost of equity financing. Moreover, by controlling the exercise ratio, the company can make the final dilution ratio of equity not directly related to the issuance scale, and the controllable space of the company increases;
4. If the equity certificate is finally exercised, the company is equivalent to realizing two financing.
Investing in convertible corporate bonds, the most important thing is to expect the stock price to rise, and the difference will be profitable during the conversion process. If there are no favorable conditions for conversion, the convertible corporate bonds are still bonds before conversion, and the fixed coupon interest income of the bonds is collected or the resale right is exercised to sell them back to the issuing company for interest compensation; Therefore, generally speaking, investing in convertible bonds can be divided into two categories: focusing on the benefits of converting shares, that is, the benefits of capital gains, and focusing on the interest income of convertible bonds themselves, that is, the rate of return (rate of return) of convertible bonds, so investing in convertible bonds is regarded as an investment target that can be attacked and defended.