| Accompany with our country economy enters high quality growth development phase,some real estate,infrastructure,and manufacturing enterprises are constrained by structural problems such as low productivity and high debt ratios.As a result,financing pressures have escalated and it is increasingly difficult to raise debt.How to meet the capital needs of production transformation without increasing financial leverage has become a problem that enterprises need to address urgently.As an effective way to alleviate financing pressure and supplement capital,the market practice of perpetual bonds has been continuously enriched in recent years.The financing of perpetual bonds not only enrichis the financing channels of enterprises,but also overcomes the defects of debt and common share financing in some aspects,reduces the financing cost of enterprises and improves the capital structure of enterprises.However,as the early perpetual bonds issued by enterprises enter the exercise period of first redemption or renewal one after another,there are more and more cases of perpetual debt renewal.Whether to renew perpetual debt has become an important link that enterprises must consider when using this financing tool.Based on the above,this paper selects the perpetual bond "17 Lu Chenming MTN001" issued and renewed by Chenming Paper as the research object,combines theoretical knowledge with analytical tools,and conducts research from the two aspects of renewal motivation and financing effect of "17 Lu Chenming MTN001" through case analysis,comparative analysis and event research,and summarizes and concludes conclusions.Firstly,the conceptual characteristics of perpetual bonds are introduced,and the research results and relevant basic theories of domestic and foreign scholars are combined to understand the intrinsic nature of perpetual bond financing,and a research framework is constructed.Secondly,this paper sorts out the current situation of the issuance and existence of perpetual bonds in China,and introduces the issuance process,terms and renewal arrangements of Chenming Paper "17 Lu Chenming MTN001" perpetual bonds through case analysis.Combined with the operating conditions of Chenming Paper and the advantages of perpetual bond renewal financing,the main motivations for the renewal of "17 Lu Chenming MTN001" are analyzed.Thirdly,from the perspective of financing cost,market reaction and financial indicators,the financing effect of the renewal of "17 Lu Chenming MTN001" of Chenming Paper was analyzed.Finally,according to the financing effect of "17 Lu Chenming MTN001" renewal,the potential risks of perpetual bond renewal are analyzed,and feasible suggestions are given for the risks.Based on the analysis,the following conclusions can be reached: Firstly,liquidity pressure is the main reason why Chenming Paper Industry gave up redeeming perpetual bonds;Secondly,Secondly,the impact of perpetual bond renewal financing on Chenming Paper is two-sided.On the one hand,it relieves the company’s short-term capital pressure,helps enterprises through the downward cycle of the industry,and improves their operating conditions and profitability;On the other hand,the renewal event of perpetual bonds has caused abnormal yields of individual stocks of enterprises,bringing short-term negative reactions to enterprises.Thirdly,in view of the risk of the continuation of perpetual bonds,this paper puts forward feasible suggestions from the perspectives of perpetual debt renewal enterprises,relevant regulatory authorities and market investors,in order to provide reference for the exercise of perpetual bonds and help enterprises to have a more comprehensive and rational understanding of perpetual bonds.It is hoped that through the analysis of this paper,it can contribute to enrich and perfect the research of our sustainable bonds,and promote the maturity of our bond market research system. |
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