| Capital is the foundation of enterprise’s production and management activities.Choosing the right financing mode is beneficial to enterprise’s future development.Under the background of the implementation of the "One Belt and One Road" Initiative,non-ferrous metal enterprises actively layout overseas markets.Affected by energy prices,logistics costs and other factors,such enterprises have a large capital demand and slow project capital return,so it is necessary to explore diversified financing methods for them.As a financing tool with multiple characteristics of debt,equity and option,convertible bond can make up for the shortage of equity financing and debt financing,so it is favored by listed companies and investors.Proper issuing time and scientific clause design are important factors affecting the success of the issuance of convertible bonds.It is worth considering whether an enterprise has achieved its issuing purpose after issuing convertible bonds and what impact the issuance of convertible bonds will bring to the enterprise.Zijin convertible bond,as one of the few convertible bonds with a large coupon rate and low coupon rate in China,achieved the purpose of issuance and successfully converted into shares in less than one year,which has certain research value and can provide reference for other listed companies to solve the problem of capital needs.Taking Zijin convertible bond as the research object,this paper first explores the issuing motivation of Zijin convertible bond from the perspectives of corporate development,capital structure,shareholders’ equity,financing cost,etc.Based on this,it analyzes the rationality of timing and clause design of Zijin convertible bond and makes it clear that the purpose of issuing convertible bond is to seek low-cost "equity" financing tools.In the part of financing effect analysis,it makes vertical and horizontal analysis of important financial indicators of Zijin Mining,calculates the financing cost of Zijin convertible bond,analyzes the impact of the issuance of Zijin convertible bond on shareholders’ equity,studies the market effect of the issuance of Zijin convertible bond by using event study method,and comprehensively judges whether the issuance of Zijin convertible bond has produced positive financing results.Finally,conclusions and enlightenments are drawn according to the above analysis.Through the research,it is found that the issuance of convertible bonds has met the financing needs of Zijin Mining and achieved ideal financing effect.The timing of issuance of Zijin convertible bond is reasonable,the scientific clause design is in line with the company’s issuing motivation,and the rights and interests of shareholders are protected.The issuance of convertible bond has a positive impact on the company’s performance and has a positive announcement effect on the company’s stock price.However,through calculation,it is also found that the financing cost of Zijin convertible bond is high and there are some areas to be improved.Therefore,this paper draws enlightenment,listed companies should combine the internal and external environment of the company,from the perspective of the company needs to choose the best financing tools;According to the financing motivation to design the terms of convertible bonds scientifically,balance the interests of various parties;Reasonably set the price of stock transfer and control the financing cost;The timing of issuance should be comprehensively considered from the aspects of macroeconomic development,industry operation,company operation,stock market,etc.,and the opportunity should be grasped.Projects to be raised shall be determined in accordance with the principles of feasibility and necessity,and the management of funds shall be strengthened to improve the efficiency of the use of funds. |
