1, ppn: Debt financing instruments issued privately in the inter-bank bond market are called private notes.
2. Private debt: refers to a corporate bond issued and transferred by small and medium-sized enterprises in China in a non-public way, which repays the principal and interest on schedule within a certain period of time. It is a private debt issue, so there is no administrative license.
Second, the advantages are different.
1、ppn:
(1) Simplify the information disclosure requirements, and issue targeted financing instruments only by disclosing information to targeted investors without fulfilling the obligation of information disclosure; The method of disclosure can be agreed upon through consultation. This will reduce the information disclosure burden of issuers, especially issuers of unlisted companies;
At the same time, private placement is conducive to introducing risk-oriented investors, building a diversified investor group, and solving the financing dilemma of financing subjects such as small and medium-sized enterprises and strategic emerging industry issuers under the traditional public offering model.
(2) The issuance scale can exceed the limit of "40%": The Securities Law only stipulates that the accumulated balance of bonds shall not exceed 40% of the company's net assets for public issuance of corporate bonds, but there is no clear provision for non-public issuance of bonds, so the scale of directional instruments can exceed the limit of 40% of net assets;
(3) Flexible non-public offering scheme: As the non-public offering mode is adopted, the terms such as interest rate, scale and use of funds can be determined by the issuer and investors through one-on-one consultation.
2. Private debt:
(1) The distribution cost is low.
(2) The qualification standard of bond issuers is low.
(3) There is no need to provide guarantee and credit rating.
(4) The degree of information disclosure is low.
(5) It is conducive to establishing strategic cooperative relations with industry organizations.
Third, the shortcomings are different.
1, ppn: debt financing instruments issued to a specific number of investors and limited to circulation and transfer within the scope of specific investors.
2. Private debt: directional debt issuance has low liquidity and can only be circulated through agreement transfer, and can only be carried out among qualified investors.
Baidu Encyclopedia-Non-public directional debt financing tool
Baidu encyclopedia-private debt