Differences in the use of bond issuance funds: the main uses of corporate bonds include fixed asset investment, technology upgrading, improving the structure of corporate funds, adjusting the structure of corporate assets, reducing the financial cost of the company, and supporting corporate mergers and acquisitions and asset restructuring; Corporate bonds are mainly limited to fixed assets investment and technological innovation and transformation, and are directly related to projects approved by government departments.
Differences in credit sources: the credit sources of corporate bonds are the asset quality, operating conditions, profitability and sustainable profitability of the issuing company; However, corporate bonds not only realize government credit through "state-owned" mechanisms (that is, state-owned enterprises and state-controlled enterprises, etc.). ), but also through administrative enforcement to implement the guarantee mechanism, the actual credit rating is similar to other national debt.
Difference in bond issuance amount: the minimum amount of corporate bonds is roughly120,000 yuan and 24 million yuan, and the amount of corporate bonds issued is not less than1000 million yuan.
Differences in control procedures: corporate bond regulators often require strict credit rating of bonds and information disclosure of issuers, paying special attention to market supervision after issuing bonds; Corporate bond issuance is approved by the National Development and Reform Commission and the State Council, requiring bank guarantees; Once the bond is issued, the examination and approval department will no longer supervise the issuer's information disclosure and market behavior.
Market function difference: corporate bonds are a main way for various companies to obtain medium and long-term debt funds; Corporate bonds are strictly controlled by the administrative mechanism, and the annual issuance amount is much lower than that of government bonds, central bank bills and financial bonds, and it is also significantly lower than the financing amount of stocks.
Extended data:
Corporate bonds refer to the securities issued by domestic enterprises with legal personality in accordance with legal procedures and agreed to repay the principal and interest within a certain period of time. Corporate bonds are generally issued by institutions affiliated to the central departments, wholly state-owned enterprises or state-controlled enterprises, and are finally approved by the National Development and Reform Commission.
References:
Baidu Encyclopedia-Corporate Debt