Case Study Of YH Bond Issuance

With the global economic situation continued to pick up,the level of China's opening has been improved up,"The Belt and Road construction is furthered,which offers a good opportunity for China's construction enterprises to expand overseas markets.While the internal and external demand driven to pick up,China's overall economic growth grows up steady.The development of the west,the revitalization of the northeast,the rise of the central part,the first of the East develop,the construction of free trade zones and urban agglomeration brings more new needs.It provides new opportunities for the development of domestic business of construction industry.The development of enterprises needs funds,and the importance of bond financing as an external financing way is becoming more and more important to the construction industry.How to reduce the cost of bond financing has become the focus of the construction enterprises.In this paper,a construction enterprise YH company is the research object,collecting the theory and literature at home and abroad,combining with the participation of YH company's bond issuance in a securities company internship experience,to study the causes of the cost of bond financing of YH company is low,and giving some advise which are applicable to the construction industry.The main content of the paper is arranged as follows:The first part is the introduction.It mainly includes the background of the selected topic,the purpose and significance of the research,the research status at home and abroad,the research contents and methods.The second part is the theoretical basis,This section introduces the current situation of the construction industry firstly,and then introduces the theory of bond financing from the comparison of bond financing and equity financing,bond financing and bank loan financing.Last,it introduces the factors that affect the bond issuing interest rate.The third part is the introduction of YH corporate bond issuance,in this part,YH company introduction,basic information of bonds,issuing institutions,issuing special terms and issuing process are described.The fourth part is analysis of the case of YH company bond issue.This section first analyzes the interest rate of YH company bond issue,and then analyses from eight aspects of shareholders' background,internal management system,technical experience,business return risk,self repayment ability,accounts receivable and inventory management,external financing channels and external guarantee,then draws a conclusion.The fifth part is conclusions and suggestions.Sums up this paper and give suggestions on how to reduce the bond issuing interest rate of construction enterprises,and reconsider the deficiency of this article.In this paper,the following suggestions are put forward on how to reduce the cost of bond financing for the construction enterprises:establish a sound internal management system;increase investment in R & D and talent,strengthen the management of accounts receivable in three ways,the former,the event and the post;strengthen the management of the completed but unsettled projects which is the special stock of construction industry;choose external guarantee when the cost of guarantee is less than the benefits of the guarantee.