Case Study On The Exchangeable Bonds Issued By Tasly Group

With the continuous improvement of the quality of life,people’s health awareness is gradually strengthened,the demand for the big health industry is increasing,and the great health industry will usher in unprecedented opportunities for development.Pharmaceutical enterprises closely follow the trend of social development,actively deploy the big health industry through restructuring,mergers and acquisitions,etc.With the increase of industrial layout,the scale of enterprises is expanding and the funds needed for operation are increasing continuously.Through which channels financing has become a problem that pharmaceutical enterprises urgent to be solved.Exchangeable bonds combine the characteristic of bonds and shares,which endow the bondholders with call options,and the issuer can achieve the purpose of low-cost financing and premium reduction,which provides a new financing method for shareholders of listed companies.But China’s exchangeable bonds market started very late,the development is not yet mature.The existing researches on exchangeable bonds mostly at the theoretical level,and mainly focus on the study of the reduction of state-owned shares,while the case studies,especially the cases of private enterprises,are less.Therefore,it is meaningful to study the exchangeable bonds issued by Tasly Group,which is the first private-owned enterprise publicly issued taking pharmaceutical enterprise as subject.There are five chapters in this paper.The first chapter introduces the research background and significance,research content and methods,and summarizes the relevant literature on exchangeable bonds.The second chapter describes the concept,classification,terms and theoretical basis of exchangeable bonds.The third chapter introduces the background and process of exchangeable bonds issued by Tasly Group.The fourth chapter mainly analyzes the exchangeable bonds issued by Tasly Group from four aspects: issue motivation,financial impact,market reaction and risk related to the setting of terms of issue.The fifth chapter summarizes the successful experience of Tasly Group in issuing exchangeable bonds,which can be used as a reference for subsequent companies seeking to issue exchangeable bonds.It is found that through issuing exchangeable bonds,Tasly Group replenished liquidity,optimized debt structure,reduced financing cost,improved short-term solvency and increased shareholder wealth.However,there are risks should to be taken when issuing exchangeable bonds.Therefore,issuers need to select favorable timing and appropriate underlying stocks,set reasonable terms.Meanwhile,issuers can deepen the application of exchangeable bonds according to the actual needs of enterprises with other capital operation means.