Research On The Exchangeable Bond Financing Case Of Zheng Bang Group

With the continuous development and progress of China's social economy and the continuous strengthening of the national economic strength,the scale of China's capital market has gradually expanded.In order to meet its own rapid development,enterprises' financing needs have been increasing,and the financing methods have gradually shown a diversified trend.Traditional bank borrowing and equity financing have their limitations to a certain extent,and exchangeable bonds have been welcomed by many companies as an innovative financing method.Compared with developed countries,China's exchangeable bond market started late and faced many difficulties and challenges.In 2008,China promulgated the “Trial Regulations for the Issuance of Exchangeable Bonds by Shareholders of Listed Companies”.After five years of preparation and preparation based on this regulation,in October 2013,China's first privately-received exchangeable bond “13 Fuxing” The successful issuance of bonds has opened up a precedent for the issuance of exchangeable bonds in China.After 2015,the number of exchangeable bonds issued in China has exploded.As of October 2018,a total of 115 exchangeable bonds have been successfully issued and are still increasing.This phenomenon fully proves that China can be exchanged.The development of bonds has made great progress,and the future development prospects are worth looking forward to.As one of the leading enterprises in China's agricultural industrialization,Zhengbang Group is the first large-scale private enterprise in agricultural enterprises to successfully issue exchangeable bonds,and it is one of the few cases in China that can be delisted after completing the share swap.Has a strong representative and research significance.Based on the relevant theories of the development of exchangeable bonds,this paper analyzes the complete process of Zhengbang Group's exchangeable bond financing,and analyzes the causes,distribution strategies and financial effects of Zhengbang Group's exchangeable bonds.Before and after the announcement date of the non-public issuance of exchangeable bonds by Zhengbang Group,the market's attitude towards the issuance of exchangeable bonds was analyzed by observing the changes in the cumulative excess return rate of the company under the event research method.Through case studies,the benefits of issuing exchangeable bonds for the company are provided,helping companies that intend to finance through exchangeable bonds in the future.The study found that the successful issuance of Zhengbang Group's exchangeable bonds has had many positive effects on the company,not only effectively supplementing the company's working capital,meeting the capital needs of the group's future investment projects,but also optimizing the group's capital structure and enhancing the company's debt service.The ability to reduce the company's debt repayment risk and external financing costs has brought wealth effects to the target company shareholders.At the same time,after in-depth study of the case,the relevant revelation is obtained.Successfully issuing exchangeable bonds needs to choose favorable timings for the issuance,especially to select the appropriate underlying company stocks and set appropriate distribution terms,but because of the exchangeable bonds as a kind New financing instruments,related information disclosure and market supervision are still lacking,and relevant departments need to take further measures to improve relevant systems.