| Capital is the decisive factor for the sustainable development of enterprises.With the rapid development of economy,relying solely on the company’s own funds is insufficient to support its development needs if the enterprises want to develop better.Therefore,it is necessary to obtain more funds from outside to support the operation and development of enterprises.Financing has become a major problem affecting the development of enterprises.Prime minister Li Keqiang has mentioned in a number of important meetings that we should cultivate and develop multi-level capital marketactively.Bond market as an important part of capital market,it is an important channel for the enterprises to raise funds by issuing bonds.However,the traditional bonds have some inherent defects such as it has short period and it will increase the debt rate.It precisely because of these shortcomings makes the enterprises realized that it is necessary for them to find a new way to raise funds.The emergence of perpetual debt not only enriches our bond market,but also decreases the debt rate as well as optimizes capital structure to some extent.It is very necessary to study the sustainable debt financing due to the fact that it started late and developed rapidly in our country.TBEA is the first lited company in Chinese transformer industry and it’s also the national key high-tech enterprise.It has the qualification of national foreign aid project,as well as the right in cooperation with the foreigh enterprises in economy and technolgy.Therefore,TBEA gets lots of national concern and policy support.Technology center is the key department of TBEA,and it constantly developing new products to meet the needs of users,at the same time,it also improves the existing technology.Therefore,the large demand of funds need to be use in technology research and development,on the one hand,combing with the current situation of the company’s high debt ratio,ordinary bonds are bound to increase the corporate debt ratio.On the other hand,making profits needs large working capital as the guarantee.In order to increase working capital at the same time does not increase the debt ratio,it’s necessary to use the perpetual bond which name called bond but fact of rights.Partially used to repay the loan,partially used to supplement working capital gap.The one of the characteristc of perpetual bond is the long-term,because of this characteristic it can solve the term mismatch problem.Due to changes in the macroeconomic environment,since October 24,2015,the central bank’s benchmark interest rate cut,corporate financing costs have been reduced.This paper adopts the method of case analysis,takes TBEA the issue of perpetual bond as the research object,and based on the theory of bond financing theory,firstly,introducing the basic situation of TBEA,such as situation of enterprise,financial and other aspects of the situation,secondly,analyzing the reasons for the issuance of perpetual bond and the advantages and disadvantages of enterprise,thirdly,analysing the key terms of design according to the relevant description of corporate bonds prospectus,analysising focuses on the effect of economic consequences and the market reflect the issue of perpetual bond,finally,summarizingthe effect of above all,and giving suggestions from all involved in the perpetual bond. |
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