| On the basis of convertible bonds,China announced on October 17,2008 the launch of a new form of hybrid bonds,exchangeable bonds,which not only have the characteristics of ordinary bonds,but also have many unique advantages,such as low issuance thresholds,low financing cost and strong flexibility.The emergence of exchangeable bonds has enriched the types of bonds in China and provided financing channels for companies with financing constraints.It is of great practical significance to the sustainable development of China’s financing market and corporate financing.In order to further accelerate the development process and penetration rate of exchangeable bonds,the government has also issued many policies to improve and regulate the bonds.As of December 31,2019,China has issued a total of 280 exchangeable bonds,including 20 publicly offered bonds and 260 private placement bonds.The total issuance scale reached 352.624 billion yuan,and the development momentum is strong.This research tries to treat China National Chemical Engineering Group Corporation as the research object,analyzes the group’s motivation for launching the bond,and focuses on the financing effects of exchangeable bonds after they are introduced to the market.It is hoped that this research can fully explain the advantages of exchangeable bond financing.Form effective experience to guide the market activities of relevant companies and transform them into an effective channel for corporate financing.This research first introduces the basic definition of exchangeable bonds in detail,outlines the characteristics and functions of this bond type,and applies information asymmetry theory,principal-agent theory and priority financing theory as the theoretical basis for this case study.Secondly,this research reviews and summarizes the entire history of China National Chemical Engineering Group’s use of exchangeable bonds for financing,involving the basic situation of the group,the background of the issuance of this type of bonds,basic information and terms of exchangeable bonds,and also studied the exchangeable bonds.The issuance process and characteristics of exchange bonds.Then,through the perspectives of the issuer ’s industry,shareholder status,terms setting,and financial situation,this article explores the group’s motives for launching exchangeable bonds,and systematically studies the specific impact of using exchangeable bonds to finance.With the help of financial indicator method and comparative analysis method,it can be known that the main purpose of launching such bonds is to obtain financing,broaden low-interest financing channels and revitalize existing assets.The investment risk,credit risk,and stock price risk of the exchangeable bond in this case are relatively low.Its issuance will increase the issuer’s liquidity without significantly affecting the performance of the underlying listed company,which improves the liquidity of the group’s funds.The issuer’s debt structure should be improved and optimized.The issuance of exchangeable bonds has had a positive impact on the issuer in many aspects,such as operational capacity,debt solvency,development capacity,and profitability have been improved.Finally,the corresponding conclusions are reached through the above analysis,and corresponding enlightenment suggestions are put forward from the perspectives of issuers and investors,hoping to help further improve China’s exchangeable bond market and promote the development and popularization of exchangeable bonds in China.Promote the healthy and sustainable development of China’s financing market and bond market. |
