The process of issuing corporate bonds:
First, 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 for issuing corporate bonds and submit it to the shareholders' meeting for deliberation and approval. 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.
Second, apply. The company shall file an application for issuing corporate bonds with the securities administration department of the State Council, and submit the following documents: (1) company registration certificate; (2) Articles of association; (3) Measures for raising corporate bonds. (4) Asset appraisal report and capital verification report.
Third, with the approval of the competent department. The securities management department of the State Council examines the application for issuing corporate bonds submitted by the company and approves those that meet the requirements of the Company Law; Those that do not meet the requirements shall not be approved.
Fourth, sign an underwriting agreement with a securities company.
Fifth, announce the method of raising corporate bonds. After the application for issuing corporate bonds is approved, the measures for raising corporate bonds shall be announced. The measures for raising corporate bonds shall specify the following main 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. The announcement of issuance shall also specify the issue price and place of corporate bonds.
Sixth, subscribe for corporate bonds. The subscription of corporate bonds by the public is called subscription. You can fill in the subscription book first, then fulfill the obligation to pay the price on time, or you can deliver cash on the spot. When the subscriber pays the full price, the issuer is obliged to deliver the corporate bonds upon receipt of the price.
Legal basis: Article 16 of the Securities Law of People's Republic of China (PRC) shall meet the following conditions for public issuance of corporate bonds:
(a) the net assets of a joint stock limited company are not less than 30 million yuan, and the net assets of a limited liability company are not less than 60 million yuan;
(2) The accumulated bond balance does 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 the first phase of corporate bonds;
(4) The investment of the 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;
(six) other conditions stipulated by the State Council.
The funds raised from 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.