Case Study On Convertible Bond Financing Of Baiyun Airport

Financing provides financial support for the sustainable operation and stable development of the company.In order to meet the different financing needs of various companies and the investment needs of investors,various types of financial instruments have emerged.As an innovative financial instrument,convertible bonds give investors unique conversion options,and their financing characteristics of both debt and equity are favored by corporate managers and external investors.The advantage of hybrid securities of convertible bonds overcomes the shortcomings of traditional financing instruments that are difficult to balance financing costs and debt repayment pressure.It solves the financing problems of enterprises to a certain extent and has become the preferred tool for financing of many listed companies.In 2017,the new re-financing regulations issued by the China Securities Regulatory Commission constrained the use of financial instruments such as additional issuance and allotment,making convertible bonds quickly become the most popular financing method in the financial market.With the rapid development of the convertible bond market,when listed companies choose convertible bonds for financing,it is important to analyze the development status of the industry,the company's own capital structure and affordable financing costs.factor.As a pillar industry of China's national economic development,the airport industry faces a series of financing problems in the development process.Due to the large scale of capital investment in the airport industry,long project payback period and low returns,there are fewer financing options available.Whether airlines can choose the appropriate financing method to raise project funds has important practical significance for the healthy and stable development of the air transport industry.The Pearl River Delta region is the most developed region for aviation logistics in China,and its airport concentration ranks first in the country.This paper selects Baiyun Airport in the Pearl River Delta region as the research object,and deeply analyzes the impact of the issue of convertible bonds issued by Baiyun Airport on its financing.It hopes to provide reference and experience for the airport industry to issue convertible bonds.This article consults the relevant literature,based on the theoretical research of convertible bond financing by domestic and foreign scholars,combined with the basic concepts and related theories of convertible bonds,taking the issue of convertible bondsissued by Baiyun Airport as an example,using case analysis method,the basics of Baiyun Airport The situation,financing background,implementation process and the release characteristics of the convertible bond were introduced.From the capital structure,equity distribution and financing cost of Baiyun Airport as the starting point,it explains the motivation of the company to issue convertible bonds,and uses the event research method to study the changes in stock returns after the issuance of convertible bonds,through various financial indicators.A comparative analysis of the financial effects of enterprises.The study found that: Baiyun Airport eased the company's capital demand by issuing convertible bonds,and ensured the smooth implementation of the expansion of the terminal area project.The successful conversion of convertible bonds reduced the debt repayment pressure of Baiyun Airport and optimized the capital structure of Baiyun Airport..Finally,according to the research on the convertible bond financing of Baiyun Airport,the enlightenment is drawn: the listed company should select the appropriate financing tool for the combination of the company's own business situation;choose the timing of the issuance of the convertible bond and the formulation of the issuance clause in combination with the market environment;use the convertible bond Financing helps to adjust the capital structure of enterprises and enhance their financial capabilities.