The Case Study Of Gree Real Estate Convertible Bond Financing

With the rapid development of China's convertible bond market,the scale of convertible bonds has continued to expand,and the barriers to entry for convertible bonds have continued to decrease.More and more companies have chosen to issue convertible bonds for financing.Convertible bonds have the dual attributes of bonds and equity,and convertible bonds have become a very popular financing tool in the capital market.This paper selects Gree Real Estate Bonds issued by Gree Real Estate on December 25,2014 as a case study.The real estate industry is currently the lifeblood of China's economy.A large amount of capital accumulation has made it an important industry related to people's livelihood and the national economy.Gree Real Estate's choice of refinancing of convertible bonds shows that Gree Real Estate is inevitable for the need for financing under the test of brutal competition between industries and its own size.The success of Gree's debt conversion has certain reference significance for the pillar industries to get rid of the traditional financing dilemma and expand financing channels.This article first explores the financing feasibility of Gree Real Estate's selection of convertible bonds based on its corporate status and industry profile before its issuance.Secondly,it introduces the issuance terms and implementation process of Gree Convertible Bonds,and analyzes its final conversion and comparison with other financing methods.Then focus on exploring the financing effect brought to Gree Real Estate after the issue of Gree convertible bonds,mainly from four aspects:financing cost,financial performance,equity structure and economic value added.Finally,based on the above analysis of convertible bonds issued by Gree Real Estate,Gree's unsatisfactory debt-to-equity swaps were mainly dragged down by operating performance,overly concentrated shareholding structure and other reasons;enterprises that choose convertible bonds for financing should choose the right timing and diversify financing methods.Investors themselves should avoid market obedience and establish correct investment concepts.