Bond Raising 10 Weeks To Break 388 Billion 600 Million: The Secret Of The Securities Financing Relay Race

According to the twenty-first Century economic report reporter's research data, securities companies showed significant financing enthusiasm after the Spring Festival.

At noon on April 16th, CITIC announced that its issuance of publicly issued corporate bonds (phase second) in 2020 ended in April 15, 2020, and the actual issuance scale was RMB 3 billion yuan, with a final coupon rate of 2.56%.

The term of the bond is 3 years. After deducting the issue cost, it will be used to supplement working capital and repay debts. Of which no more than 3 billion yuan is used to repay debts due, and it intends to repay the 4 billion scale corporate bonds issued by CITIC in 2017 and will expire in April 20, 2020.

This is not an example. In twenty-first Century, the economic news reporter noted that many brokers have joined the debt issuance force recently.

In April 15th, Tianfeng securities successfully completed the issuance of public investors' bonds (phase I) (epidemic prevention and control bonds) for professional investors. In addition, some brokerages also launched equity financing "blood enriching".

"Since the beginning of this year, the securities companies have actively issued bonds to enrich the blood. First, the securities companies are optimistic about the future trend of the capital market, and have the power to replenish capital to accelerate the expansion of future business. Two is the current interest rate is in a relatively low stage, liquidity is relatively loose, is a good time to issue bonds. In April 16th, He Nanye, a special researcher at Suning Financial Research Institute, pointed out that

According to its logic, another main reason is that with the deepening of the science and technology board and the advance of the registration system of gem, the capital intermediary business has become the core business of the securities companies. For the securities companies, replenish capital and consolidate capital strength is the core of enhancing the competitiveness of the future.

Bond financing breakthrough 380 billion

The trend changes occur after the Spring Festival.

In twenty-first Century, the economic news reporter noted that in just two and a half months, 6 brokerages have completed equity financing and the total amount of financing is 34 billion 618 million yuan, up nearly 50% from the total financing amount of 23 billion 174 million yuan in 2019 2-4.

In February, BOC successfully completed the IPO issue and landed in the capital market. The total financing was 1 billion 521 million yuan, significantly increasing net capital and investing in eight major business areas, including investment banking, retail brokerage, asset management, securities investment, private equity investment, futures business, research and institution business, and wind control compliance and information technology.

CITIC Securities has completed the acquisition of Guangzhou securities through private placement. Tianfeng securities and Soochow securities have raised 5 billion 349 million yuan and 5 billion 988 million yuan respectively through rights issue, and 7 billion 300 million yuan and 2 billion 800 million yuan of convertible bond financing by Dongfang fortune and Huaan securities respectively.

However, this is only a part of this year's strong financing of securities companies, and the scale of relay financing of securities companies in bonds is even larger.

Wind data show that, after the Spring Festival (February to date), as of April 16th, 44 listed companies issued 153 bonds, including corporate bonds, short-term financing coupons, ABS and so on, with the total amount raised as high as 388 billion 600 million yuan, compared with the same period in 2019, the figure was only 189 billion 700 million yuan, an increase of 104.85% compared with the same period. In the first half of 2019, the amount of bond financing was barely exceeded four hundred billion.

Specifically, short term financing coupons are still the highest way of bond financing for brokerages. 29 brokerages raise 209 billion 100 million yuan through short-term financing vouchers, accounting for 53.81% of the total amount, followed by corporate bonds, and 36 brokerages raise 175 billion 200 million yuan by issuing corporate bonds, accounting for 45.08%.

The highest amount of financing is CITIC Securities, which has issued 14 bonds since the Spring Festival. The total amount of financing has reached 45 billion yuan, followed by China Merchants Securities, issuing 8 bonds, accumulating the total issue amount of 28 billion 500 million yuan, CITIC construction investment ranking third, issuing 7 bonds, and accumulating a total value of 26 billion yuan.

The reporter combed the prospectus announcements of major brokerages, and found that most of the funds used by the securities companies for equity financing or debt financing this year were used to replenish capital, expand the scale of securities credit business and enhance the ability to resist risks.

Not long ago, CITIC Securities pointed out in the 2020 corporate bond prospectus that the fund raised after deducting the related expenses such as issuance is all used to supplement the company's working capital. The company will use funds flexibly according to the actual business needs, mainly for the development of capital intermediary business.

? ? Tianfeng securities issued "corporate bonds in 2020 (phase 1)" (epidemic prevention and control debt) also pointed out that fund-raising funds can be used to support the epidemic prevention and control related businesses, including, but not limited to, providing funds for equity pledge business for the affected areas or customers suffering from the epidemic, providing funds for the two financial businesses for the affected areas or for the injured customers, and using equity pledge or two financial services. To provide financial support for enterprises involved in epidemic prevention and control, such as medical research and development, medical device manufacturing, material transportation and storage, and construction of epidemic areas.

Financing costs dropped significantly

And the other side of enriching blood and promoting development is inseparable from the loose market environment and policy support.

According to the twenty-first Century economic report reporter statistics, the coupon rate of bonds issued by brokerages this year is generally significantly lower than that of the same period in 2019. Since February 2020, the average coupon rate of 153 bonds has been 2.78%, compared with 3.76% in the same period last year.

In this year's bonds, the highest coupon interest rate was issued on March 18th by the first venture securities in 2020, the subordinated securities (phase I) of the securities companies, and the 2020 issue of the "publicly traded corporate bonds (phase I)" (the epidemic prevention and control debt) issued by Minsheng securities in March 17th, with a coupon rate of 5%.

The lowest interest rate "Huaan securities Limited by Share Ltd Switching Company bonds" issued in 2020, the coupon rate was as low as 0.2%, and the "coupon rate" of the 2020 phase of the third short-term financing bonds (bonds linked) of shwan Hongyuan securities company was only 1.40%.

? ? In 2019, the highest interest rate issued in the same period of 2019 was "non-public offering of Datong securities, 2019 subprime bonds (phase I)". The issuance rate of the coupon was as high as 6%. The second issue of "Minsheng securities, the first issuance of corporate bonds (phase I)" in 2019, also exceeded 5.2%; the lowest issuance rate of CITIC Securities Limited by Share Ltd 2019 year short term financing coupons. 2.71%, which is generally higher than the coupon interest rate this year.

"(a lot of bonds are issued this year), one of the main reasons is that the cost of capital is relatively low. Now the yield of the ten year treasury bond has reached 2.5%, and the time window is relatively good, which is very critical." In April 16th, Liu Wenqiang, a non banking financial analyst at the Great Wall securities, pointed out to reporters in twenty-first Century economic report.

In addition, Liu Wenqiang also said that at present, the bond financing enthusiasm of brokerages is also inseparable from the support of regulatory authorities. In March 1st this year, on the first day of the implementation of the new securities law, the NDRC, the SFC and the two major exchanges issued successive important notices to fully implement the registration system of corporate bonds and corporate bonds, and the process of accepting and examining bond issuance was greatly simplified.

"Recently, regulators have held a series of meetings to set the tone for the capital market. Although the market will fluctuate in the short term, it will not affect the general direction of the spiral of capital market. We are all more optimistic about the development of the capital market, so we should make the necessary capital reserves and supplement when the capital cost is relatively low." Liu Wenqiang said.

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