| Sustained development of an enterprise is inseparable from the support of funds.On the way of expanding the scale of operations of an enterprise,relying solely on internal funds may not meet the development needs.Therefore,it is necessary to obtain funds from the outside to support the operation and development of the enterprise.How to conduct external financing and the selection of Financing tools have become an important issue for enterprises.The 13 th Five-Year Plan clearly stated that it is necessary to actively cultivate an open,transparent,and healthy development of the capital market,steadily promote the innovation of bond product,and promote the combination of equity and debt financing.As a new type of financing tool,perpetual bonds meet the requirements of China’s multi-level capital market construction and enrich the variety of financial instruments in China’s bond market.It is characterized by the dual nature of "shares" and "debt".Enterprises can use perpetual bonds to obtain funds while counting them into equity,avoiding the rise in asset-liability ratio caused by traditional bond financing,and achieving the purpose of optimizing capital structure.However,perpetual bonds started late in China’s capital market,and their research and understanding are still insufficient.Therefore,it is necessary to carry out case studies of perpetual bond financing.Yanzhou Coal Industry is a representative coal enterprise in East China.In recent years,under the requirements of capacity reduction and cleaner production,the company has faced greater operating pressure,and its own internal capital accumulation cannot meet the development needs.Yanzhou Coal has long relied on bank borrowing and ordinary bond financing to obtain funds.Its asset-liability ratio is relatively high.In order to integrate funds without increasing the asset-liability ratio,perpetual debt financing tools are used by companies.In 2018,Yanzhou Coal Industry completed the issuance of 5 billion yuan of perpetual bonds,and the face value of a single issue ranked first among coal companies that issued perpetual bonds that year.This article comprehensively uses the case analysis method,literature research method,comparative analysis method and event research method to study the case of Yanzhou Coal Industry’s perpetual debt financing.By sorting out the basic situation of Yanzhou Coal Industry,the issuance of perpetual bonds and relevant clauses,the motives for the issuance of perpetual bonds by Yanzhou Coal Industry are analyzed accordingto the actual situation of the enterprise,and then based on the annual report of the enterprise and the prospectus of perpetual bonds etc,the effects of the coal industry’s perpetual bonds after the issuance were analyzed in detail.Through the case study,the following conclusions are drawn: the external and internal motivations driver jointly promote the issuance of corporate perpetual bonds.Financial innovation policy support,the demand for banks ’perpetual debt business,and the unique advantages of perpetual debt financing methods are the external motivations for companies to use perpetual debt financing tools.Meeting the capital needs and optimizing the capital structure are the main internal motivations for companies to issue perpetual bonds;Yanzhou Coal Mining has achieved positive results in the financing of perpetual bonds.Compared with ordinary bond financing and equity financing,the choice of Yanzhou Coal Industry’s perpetual debt financing method has achieved good comprehensive utilization effects.The funds incorporated into perpetual bonds supplemented the company ’s cash flow,avoided short-term debt defaults,and promoted the company ’s continued capital expansion.At the same time,the inclusion of perpetual bonds in equity has prevented the asset-liability ratio from rising,lowered the proportion of property rights,and achieved the purpose of optimizing the capital structure;Yanzhou Coal Mining’s perpetual debt financing has certain negative effects.In the short term,the market has not responded well,and the characteristics of perpetual bonds and the company’s own situation have also brought related risks to the company.In the end,this article puts forward suggestions on financing decisions of other enterprises,the investment analysis of investors and policy formulation of regulatory authorities based on the financing effect of Yanzhou Coal Industry Perpetual Bonds. |
