Research On The Financing Method Of Exchangeable Bond

At the end of May 2013,the Shenzhen Stock Exchange released the Notice on Relevant Matters of Pilot Business of Exchangeable Private Placement Bonds for small and medium enterprises.Today,the background of the development of exchangeable debts in our country is not the size of the non-reduction but in the context of the revitalization of existing assets,exchangeable debts are given new connotation,to achieve the survival of stock equity.As a composite financing tool,exchangeable bonds have gradually become the new hot spot in the capital market.However,due to the short development history of exchangeable bonds in our country,so far,people's understanding of exchangeable bonds remains at an initial stage.Domestic and foreign scholars have not studied the exchangeable bonds for a long time.Most of the existing researches are based on the comparison with the convertible bonds.In view of this,this article focuses on the analysis of the motives and characteristics of Dongxu Optoelectronic Group's issuance of exchangeable bonds,the influence and risk of the issuance of exchangeable bonds on the company's capital structure and business performance,and puts forward suggestions on the issue of exchangeable bonds.This not only helps investors correctly understand exchangeable bonds,but also provides reference for enterprises to adopt innovative financing methods such as exchangeable bonds.This article uses the normative research and the case study to combine the method to carry on the research.In the theoretical part,the author first studies the literature review on corporate finance motivation,corporate governance and exchangeable bond pricing,and then analyzes the reasons for the issuance of development status at home and abroad and the related risks.In the case part,taking the exchangeable bonds issued by Dongxu Group as an example,the author analyzes the basic conditions of issuance,the design of articles,the motivation of issuance and the impact on performance.Through case analysis,the following conclusions are drawn:(1)Dongxu Group reduced the financing cost by using exchangeable bond financing.(2)The issuance of exchangeable bonds by Dongxu Group improved its business performance.(3)Dongxu Group issued exchangeable private placement bonds to optimize the capital structure.(4)The terms of issue of exchangeable private bonds by Dongxu Group are reasonably designed.This article summarizes the issuer's experience with exchangeable bond financing:(1)The selection of suitable underlying shares helps to facilitate the successful issuance of the exchangeable bonds.(2)Good terms and conditions help to enhance the liquidity of exchangeable bonds.(3)A sound credit rating system can promote the more efficient use of exchangeable bonds for their financing functions.(4)Issuers and regulators should strengthen information disclosure and risk control of exchangeable bonds.The contributions of this dissertation are mainly as follows:(1)Perfecting the related theoretical research on corporate finance,enriched the theoretical results on the design of the terms of exchangeable bonds,corporate governance,etc.(2)Providing successful experience for Chinese enterprises to issue exchangeable bonds,It provides a reference for the regulatory agencies to revise the system.