A Case Study On International Bond Issuance Of H Company

In recent years,China's real estate industry has been developing rapidly with the policy of expanding domestic consumption and increasing domestic demand.As a capital intensive industry,the development of real estate development enterprises needs the support of huge amount of funds.Bank credit,bond financing,equity financing and other ways are the important financial support for the Real Estate Company.Funding channels,including bank credit,is the main channel for Chinese Real Estate Company to get capital.At the same time,high speed expansion also makes high debt,high leverage and high risk become the common characteristics of China's Real Estate Company.In order to establish a long-term mechanism to make the real estate industry develop healthfully,the government has issued a number of policies to control the real estate industry,especially the real estate credit has been limited,China's Real Estate Company urgently needs more.With diversified financing channels,offshore bond issuance is a good choice.H company is a typical high debt,high leverage and high risk Real Estate Company in China.This paper selects the overseas issuing case of H company as the main body of research.It is intended to answer the key problem of how to obtain reasonable distribution costs in foreign debt issuance,which provides a reference for our similar companies to issue bonds abroad.In this paper,through the research methods of inductive analysis,comparative analysis and case analysis,from the development of H company,the status of industry development,the operation and financial situation of H company and the background of the issuance of foreign bonds in H company,this paper analyzes the issuing mode of foreign bonds,the composition of the issuing interest rate of foreign bonds,and the overseas bonds.The key factors such as the risk management of the bond and other key elements are compared with other low risk bonds and referenced by the competitors' process of debt issuance.The key points of the difficulties and solutions for the choice of the foreign debt issuance model in China's real estate enterprises,the control of the interest rate and the risk management of foreign debt are summarized.In this paper,we get the following 3 points through the case study of H's offshore bond issuance.1.The foreign debt issuance of real estate enterprises in China needs to choose the mode,the red chip distribution structure and the special purpose subject distribution structure by weighing the distribution cost and the financing efficiency,so as to improve the rationality of the choice of the foreign debt issuing mode.2.The real estate enterprises in China can seek reasonable distribution pricing in foreign debt issuing by highlighting their own scale growth advantages,increasing market position advantages and improving their profitability advantages.3.China's real estate enterprises can strengthen the information communication of foreign bond risk management by establishing an effective communication platform in the international capital market,guaranteeing the quality of information disclosure and forming key knowledge reserves of foreign financing.At the end of this paper,we can get the conclusions of this case study that H company rationally chooses the foreign debt model,H company uses its own advantages to obtain reasonable pricing and H company strengthen the risk management of foreign bonds through effective communication.