Daqin Railway Convertible Bond Financing Feasibility Research And Project Design

China Railway is developing rapidly and railway construction need huge capital to support. At present our country the financing system of railway financing in our country is diversified financing led by government, which Based on the experience of the foreign railway financing system, absorbs the non-government capitals to solve the problem of railway financing. It is beneficial to obtain money at a low cost and can improve corporate governance for railway transportation industry listed companies to issue convertible bonds. So it is of great significance for railway transportation industry listed companies to issue convertible bonds.This article combines theory analysis with case analysis. There is little research combining railway financing and convertible bonds, so this article studies the railway financing problem in the application of convertible bonds and discusses the feasibility of issuing convertible bonds. Then on the basis of theoretical analysis, this paper chooses the three listed companies that related to railway transportation industry and have issued convertible bonds as examples, analyses the terms of the convertible bonds and financial index of the three listed companies so as to summarize the common features as a reference for China railway transportation industry. Subsequently as Daqin Railway is the leading company in China railway transportation industry, this article selects Daqin Railway as a perfect case to do detail analysis on financing needs, financing tools, convertible bonds issued policy conditions, risk, development prospects and financial indicators in the past three years. At last if Daqin Railway issues convertible bonds hypothetically,this paper designs the basic terms of Daqin Railway and makes suggestions for railway transportation industry listed companies to issue convertible bonds. The highlight of this article is that at the terms design part, this article uses Black-Scholes model to calculate the option value and then calculate the average coupon rate of convertible bond.