Analysis Of The Application And The Pricing Of Perpetual Bond Financing

In recent years,China's financial market is becoming more and more perfect,and the means of financing are constantly enriched.Especially in the case of stock market shocks and complex financing environment,new financing tools such as mixed capital bonds emerge constantly,which help enterprises to face the difficulties of debt ratio and financing.Sustainable bond is one of these new financing channels.Its advantages such as controllable issuing period,adjustable issuing terms and mixed capital attributes make it popular in recent years.So far,the stock of sustainable bonds in China has reached 627.At the same time,as a new financing tool,the domestic research on sustainable debt is still relatively small,which also brings many problems to enterprises.For example,how to choose the timing of issuing sustainable debt;how to determine the terms and risks of sustainable debt in the issuing price;how to adjust the terms to suit the company's own conditions to reduce the corresponding financing costs;and how much financial and operational economic effects can the issuance of sustainable debt bring to the company.Therefore,in order to solve these problems,this paper takes the issue of sustainable bonds of listed company TBEA Co Ltd(hereinafter referred to as "TBEA")as an example,specifically analyzes its issuing process and pricing,and explores the impact of the issuance of sustainable bonds on the performance of TBEA.Special substation is a listed company.Continuous issuance of sustainable bonds is representative,and the data is easier to obtain than other state-owned enterprises issuing sustainable bonds.Bonds issued by special substation have a deep impact on the company.Selecting it as a case study has typical significance.Firstly,this paper analyses the necessity and applicability of issuing sustainable bonds from the development strategy and financing needs of the special substation industry of the sustainable bond issuing company.Secondly,by analyzing the changes of the company's operating and financial indicators,as well as the changes of the stock price before and after issuing the sustainable debt,this paper explores the impact of the sustainable debt financing on the performance of the special power transformer.Finally,according to the relevant provisions of its issuance,the risk factors are explored,and the spread of its issuance is studied on the basis of risk factors compensation.At the same time,from the perspective of debt issuance,we use Black-Scholes(hereinafter referred to as B-S)option pricing theory and interest rate term structure theory to price the different risk values of the sustainable debt,and then get the theoretical spreads of various risks,namely credit default risk,interest rate volatility risk and liquidity risk.Then we compare the theoretical spread with the actual spread to judge the true investment value and the accuracy of pricing.In the above research,we try to provide some references and operable suggestions for other companies that issue sustainable bonds.