Conditions for issuing convertible bonds

The public offering of convertible corporate bonds by listed companies shall not only comply with the General Provisions on Public Offering of Securities by Listed Companies, but also comply with the following provisions: the weighted average return on net assets in the last three fiscal years shall be no less than 6% on average; The accumulated balance after the issuance of corporate bonds shall not exceed 40% of the net assets at the end of the latest period; The average annual distributable profit realized in the last three fiscal years is not less than the interest of corporate bonds for one year.

Convertible bonds are bonds that bondholders can convert into common shares of the company at the agreed price at the time of issuance. If the bondholders do not want to convert shares, they can continue to hold the bonds until the repayment period expires to collect the principal and interest, or they can be sold and realized in the circulation market. If the holder is optimistic about the appreciation potential of the issuing company's shares, he may exercise the right to convert the bonds into shares at a predetermined conversion price after the grace period, and the issuing company shall not refuse.

The interest rate of this bond is generally lower than that of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the financing cost. The holder of convertible bonds also has the right to sell the bonds back to the issuer under certain conditions, and the issuer also has the right to redeem the bonds under certain conditions.

Convertible bonds refer to bonds that holders can convert into a certain number of other securities at a certain proportion or price within a certain period of time.

Convertible bond is the abbreviation of convertible corporate bond, which is a special corporate bond that can be converted into common stock at a specific time and under specific conditions. Convertible bonds have the characteristics of both creditor's rights and equity.

Convertible bond is in English: convertible bond (or convertible debt). Bonds with conversion characteristics issued by companies. In the prospectus, the issuer promises to convert the bonds into common shares of the company at the conversion price within a certain period of time. The conversion function is an obligation of the bonds issued by the company. The advantages of convertible bonds are the fixed income that ordinary shares do not have and the appreciation potential that ordinary bonds do not have.

Convertibility is an important symbol of convertible bonds, and bondholders can convert bonds into stocks according to agreed conditions. Converting shares is an option that investors enjoy but ordinary bonds do not. Convertible bonds are clearly stipulated at the time of issuance, and bondholders can convert bonds into common shares of the company at the price agreed at the time of issuance.

If the bondholders do not want to convert shares, they can continue to hold the bonds until the repayment period expires to collect the principal and interest, or they can be sold and realized in the circulation market. If the holder is optimistic about the appreciation potential of the issuing company's shares, he may exercise the right to convert the bonds into shares at a predetermined conversion price after the grace period, and the issuing company shall not refuse. Because of its convertibility, the interest rate of convertible bonds is generally lower than that of ordinary corporate bonds, and issuing convertible bonds by enterprises can reduce financing costs.