The Issue Of Convertible Bonds Financing Chuan Tou Energy Case

The development of the enterprise is inseparable from the support of sufficient funds.At present,financing has always been an important way for an enterprise to obtain a stable source of funds.The choice of financing methods has a significant impact on the business development of the company.With the rapid development of the economy,the financing methods of enterprises are constantly being reformed.Convertible bonds are a new type of financing method that combines the characteristics of debt financing and equity financing,plus the 2017 new rules for the refinancing of the China Securities Regulatory Commission.The introduction has accelerated the development of convertible bonds,making it one of the most popular financing tools for investors.At present,the domestic research on convertible bonds mainly focuses on the empirical research of pricing model and the design of terms.In recent years,the case study of convertible bonds has appeared,but the field of research is more extensive.The research on the effect of convertible bonds in the power industry is relatively small.The power industry is an important part of China's national economy.Therefore,it is of great significance to study the financing of the power industry.This article take ChuanTou Energy in convertible bond as the study case,the first combed the on convertible bonds related research status at home and abroad,and introduces the related overview of convertible bonds and related theories.Secondly,it describes the concrete implementation process of the convertible bonds issued by ChuanTou Energy investment energy.Then on the basis of the combination of sichuan for energy performance analyses the agent companies issuing convertible bonds and convertible bonds after effect,the effect analysis from financial effect and dilution effect,tax shield effect carried on the analysis to these three aspects,including financial effects including financial ability,dilution effect mainly analysis the convertible bonds on the company's equity structure and diluted earnings per share of the tax shield effect from the perspective of interest with the tax analysis of the convertible bonds have a tax shield effect;Based on the relevant financial indexes of ChuanTou Energy investment energy,it is verified whether the convertible bonds of ChuanTou Energy investment energy can optimize the capital structure.Finally,the paper analyzes the market reaction of the convertible bond market by the event research method.In this article,through analysis of ChuanTou Energy in convertible bond to get the following conclusions: first,ChuanTou Energy for setting up the appropriate energy release clause and select the reasonable time to effectively reduce the company's financing costs;Second,the financial ability of the company has been greatly improved during the issuance of convertible bonds of ChuanTou Energy investment energy.After the completion of the debt-for-equity transfer,the company did not dilute the shareholders' equity and earnings per share.Thirdly,after the issuance of convertible bonds,the market generated a positive reaction in the short term.Fourthly,with the continuous realization of the transfer,the capital structure of the company is optimized.Finally,according to the research obtained in this paper,the author hopes to provide reference value and experience for the company that intends to issue convertible bonds in the future.