Research On The Issue Plan Of Convertible Bonds Of Jiangnan Water

Convertible bond is a kind of financial derivative instrument with both creditor's rights and stock rights.Its essence is to issue bonds plus an option,which gives the buyer the right to convert creditor's rights into company's stock rights under specified conditions.In the past decade,China's convertible bonds have developed rapidly.From 2017 to 2019,the issuing scale of convertible bonds doubled,and in 2019,the issuing scale has reached 269.5 billion yuan.In addition,in recent years,the audit procedures of equity financing in China are complicated,and enterprises are hindered in equity financing.It is urgent to find alternative financing methods.Convertible bonds with the above characteristics have gradually become the new darling of financing.The development of convertible bonds is not a flash.It has developed for more than 20 years in the Chinese market.As a flexible and both offensive and defensive financial tool,it has become a kind of financing tool.But is convertible debt a perfect way of financing?Blindly seeking new financing methods will inevitably not suffer from backfire.There are not a few enterprises that fail to issue convertible bonds.In order to improve the success rate of convertible bond issuance,this paper selects the failed Jiangnan Water Affairs as the analysis object.Firstly,it describes the research significance and current situation of this paper,using case analysis and literature review as research methods.Then it introduces the general situation and issuance process of the convertible bond scheme of Jiangnan Water Affairs Development Bank,and analyzes the Jiangnan Water Affairs from the problems of the issuance scheme In the process of making the plan,what are the problems and the reasons behind them,and finally put forward the corresponding countermeasures.The paper mainly includes four parts: introduction,case description,case analysis,countermeasures and suggestions.The first part mainly describes the research background,research purpose and significance,literature review and research methods of this paper;the second part mainly introduces the general situation of Jiangnan Water Company,the basic situation of convertible bond issuance scheme and the process of convertible bond issuance to delisting;the third part mainly introduces the theoretical basis of this paper,analyzes the problems existing in Jiangnan Water convertible bond and In the fourth part,the author puts forward some suggestions for the problems existing in the convertible debt scheme of JiangnanWater Affairs.The purpose of this paper is to reveal the risks and countermeasures that need to be paid attention to in order to improve the conversion rate of convertible bonds and avoid early resale,so as to guide the future financing mode to play its greater market value.