What does it mean to issue renewable corporate bonds?

Renewable corporate bonds, also known as "renewal bonds", are corporate bonds that can postpone repayment of principal. Specifically, this kind of deferred repayment can be divided into the following two situations:

(1) When the bond matures, if the debtor is unable to pay and borrow new debt to repay the old debt, the repayment of the principal and interest of the bond may be postponed with the consent of the creditor. At the same time, the conversion right of the original convertible corporate bonds has also been postponed accordingly. After the extension, the debtor may adjust the interest rate according to the situation.

(2) When issuing bonds, the debtor can first set a deferred payment clause in the issuance contract, so that the creditor can continue to hold the bonds at the original interest rate after the maturity of the bonds until the scheduled date or one of several scheduled dates. Generally speaking, this kind of bond has a short term. For fundraisers, when it is necessary to continue to issue bonds and investors are willing to continue to buy them, the use of such bonds can save handling fees and issuance fees. For investors, they have the right to ask to postpone the repayment period of bonds to a specific date and get the principal and interest at the original interest rate, so they can adjust their asset portfolio flexibly and freely.