Seize The Opportunity Of National Policy To Issue Bonds, The Financing Amount Of Hong Kong Group Is 800 Million Yuan.

　　 Red bean In September 20th, the group announced the issuance of medium-term notes in 2012, and the direct financing amount was 800 million yuan. In this regard, I recently interviewed Hu Guoliang, general manager of Hong Kong group finance company.

The author: after the issuance of 400 million yuan bill in May this year, the red bean released another 800 million yuan. Is there any funding gap?

Hu Guoliang: there is no cash gap in the continuous issuance of medium-term notes. In the prospectus, the "liquidity gap of 2 billion 850 million yuan" is calculated by the main underwriter in accordance with the general growth rate of the enterprise in the next 3 years. Capital is the blood of enterprises. The normal development of enterprises needs sufficient capital flow guarantee. In fact, the capital flow of large enterprises such as the red bean group has been normal and guaranteed in recent years. At present, the cash of the red bean group is more than 10 billion, and the red bean group is not short of money to maintain the normal operation of the enterprise.

Author: since there is no shortage of money, why should red bean issue additional bonds?

Hu Guoliang: This is the opportunity for the red bean group to seize the national policy. The national "12th Five-Year plan" clearly put forward that we should speed up the construction of multi-level financial market system, significantly increase the proportion of direct financing, and actively develop the bond market. The red bean group mainly adjusts the debt structure, reduces the financing cost, and continuously raises funds in the bond market. Since the beginning of this year, in order to "steady growth and promote development", the state has further increased the strength of the development of the bond market.

The red bean will raise funds to repay bank loans through issuing bonds, so that it can vacate the amount of bank loan space and indirectly support the capital demand of small and micro enterprises.

Author: what are the advantages of bond financing for the development of enterprises?

Hu Guoliang: there are two main aspects: first, to reduce financial costs; the two is to optimize the debt structure of enterprises. The fund for the development of the red bean group comes from four pieces: one is self accumulation, one is stock, one is a bond, and one is bank loan. Of these four, the cost of loan financing is relatively high. In recent years, the average cost of society is 8 to 10 points, and the use cycle is short. The issuance of medium and long term bonds is currently about 5 points, which can save nearly half of the cost. Issuing bonds is the direct financing of enterprises. Therefore, enterprise financing is passed by three points and one bank. loan 1/3, 1/3 of listed capital raising and direct financing by issuing bonds are common practices of large international enterprises. In developed countries, SME financing relies on bank loans, and large enterprises rely on issuing bonds. It can be said that if enterprises want to do bigger and do better, they must reduce the proportion of bank loans and increase the proportion of bond issuance in financing. Improving and optimizing the financing structure is also a major strategic move for the red bean group to achieve transformation and upgrading and optimize its development.

Author: what are the conditions for issuing bonds?

Hu Guoliang: Yes, it depends on the credit rating and assets scale of the enterprise, which must be strictly examined and approved by the relevant departments of the state. According to the relevant regulations, the long-term credit rating of enterprise entities can be divided into three grades and nine grades, namely, AAA, AA, A, BBB, BB, B, CCC, CC and C. The red beans are AA grade, which is evaluated by the qualified third party rating agencies. They get AA grade credit rating, which is still relatively small in the private enterprises. This means that the ability of red beans to repay debts is very strong, and is not affected by the adverse economic environment, and the risk of default is low. According to the China Association of interbank dealers, the ratio of issuing medium-term notes by AA level credit enterprises can reach 40% of net assets. In terms of available net assets, the red bean group can issue a medium-term note of 2 billion 700 million yuan. We have issued 1 billion 200 million medium-term notes for the two time this year, and will continue to issue medium term notes in order to adjust the debt structure.

Author: why is the stock pledge rate of Hong Kong stock very high?

Hu Guoliang: This is the cumulative result of equity pledge for many years. This is also a good mechanism for red bean group to control risks. We do not advocate that enterprises rely on enterprises to guarantee each other's debts, because this easily leads to the breakup of one party's capital chain, resulting in the Domino domino effect. Mutual guarantees will enlarge the leverage of capital and debt, and at the same time increase the risk of debt. In the past more than 10 years, Hong Kong has been insisting on "no guarantee for the outside units and no guarantee from outside units". The pledge of shares has precisely proved that the risk of the red bean group is controllable, and there is no hidden risk of guarantee.

Author: do you have any other ideas to say?

Hu Guoliang: first of all, I want to thank all the media and all sectors of society for their interest in the red bean group. On the other hand, we also associate with other enterprises by the red bean group. We should also seize the state's relaxation of bonds. market We should make good use of policies and direct financing so as to reduce the financing cost of enterprises and leave more room for bank loans to SMEs.