Convertible Bond Financing Application And Evaluation

The development of enterprises need a lot of fund,there are many companies which are shortage of funds,lack of financing,with the development of the capital market,many way of financing for different businesses to choose,but the low-Cost financing is still an important task now.Convertible bonds are mature financial instrument in th e capital market.They are corporate bonds,which have certain conditions of conversion,low cost and flexible operation.They think investors want profit maximization.Adapting to the dynamic needs of financiers is a popular way of financing.However,fro m a practical point of view,companies havemany problems when their use,many companies ignore their own situation,increasing the company's operational risk.GD Power is a state-owned listed company of monopoly industries,has released convertible bonds in 2003 and 2011,the paper analyzes the use of GD Power in the convertible bond financing,changes in the Company and investors to obtain returns on Convertible bonds to the financing of the way to evaluate.This paper is divided into five chapters.The first chapter explains the background,significance,research methods and research contents of this paper.The second chapter elaborates some theories which are involved and applied in this paper,and also discusses the development process of convertible bonds in our country.The third chapter describes the specific situation of the two times the issuance of convertible bonds by GD,and explains the necessity of issuing convertible bonds and the specific distribution plan and implementation status.The fourth chapter is the study of the two times the issuance of convertible bonds by G D Power,including the comparison between the terms and the implementation effect and the i mpact on long-term performance.The fifth chapter is the conclusion of this article.Through the study of this paper,convertible bonds have the advantages of low cost and optimized capital structure.Its issuance laid the foundation for the rapid expansio n of GD,and raised a lot of low-cost funds.However,the convertible bonds did not improve the state power Profitability,its growth,because of the profitability of China Power itself is not good,the funds did not achieve effective use of investors did not get enough earning,making the convertible bonds become a national electricity Low cost of misappropriating tools.From the perspective of market development,it is only by raising the coupon rate of convertible bonds,lowering their conversion prices,or increasing the dividend income of investors in order to play the role of convertible bonds.