130 Listed Companies Rush Through 227 Billion 400 Million Financing Banquet

In October 18, 2011,

However, in the face of the financing demand of listed companies, there has been a series of changes in the corporate bond market. For example, the whole corporate bond market has tightened funds, and the listed companies have begun to reduce the scale of issuing bonds frequently.

Since the SFC set up a "green channel" for corporate bonds, 600018.SH has been fortunate to win the lead.

In the crowd

After the Hong Kong Group, the 25 listed companies such as Datang Power (601991.SH) and Jizhong energy (000937.SZ) issued a successful application for corporate bonds. They share a common ground with the Hong Kong Group, that is, the final issuance scale of corporate bonds has reached the upper limit approved by the SFC.

But the watershed quickly appeared. From the beginning of 600231.SH, some listed companies began to reduce the scale of issuance of corporate bonds.

In July 23, 2011, the CSRC approved by Linggang group was issued "corporate bonds not exceeding 1 billion 500 million yuan", but in the actual sale process, the size of the debt issuance of Linggang group was slightly reduced, and the final corporate bond issuance scale was fixed at 1 billion 480 million yuan.

After that, nearly half of the listed companies began to reduce the scale of issuing bonds.

They are 7 listed companies: 002110.SZ, 000600.SZ, Zhongfu Industrial (600595.SH), Jidong Cement (000401.SZ), comprehensive arts stock (600770.SH), Bayi Steel (600581.SH), Dongguan holding (000828.SZ).

It is no doubt that the stock market has shrunk most seriously in the stock market. It has changed to 700 million yuan from the scale of "no more than 1 billion 500 million yuan", and its shrinkage has shrunk by more than 50%.

On the one hand, the scale of issuing bonds of 700 million yuan is due to the tight capital market in the bond market, but on the other hand, it is also tailored to the company's own circumstances.

Another sign of tight money in the corporate bond market is the cold sale on the Internet.

Unlike Star Lake Technology (600866.SH) and South China Sea Development (600323.SH), the majority of listed companies choose the way of "Internet for public investors and the agreement of institutional investors under the net". However, beyond the expectation of many listed companies, the online subscription is deserted.

Take Tianwei Bao (600550.SH) as an example, the company's initial distribution is 10% online.

90%, but in the end, online subscriptions account for only 0.65% of the total.

In the same way with Tianwei, there are a large number of listed companies such as 600416.SH, 000528.SZ, and CHINT electric (601877.SH).

"Public investors are less concerned about corporate bonds. Now there are more listed companies issuing corporate bonds, but the public investors who are willing to subscribe for corporate bonds have not increased significantly. Therefore, the amount of online subscription funds allocated to each listed company is less."

Shenzhen City, a listed company secretaries said.

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Securities Dealers encounter "underwriting gate"

No matter how tight the corporate bond market is, the irregularity of the A share market is that as long as a listed company starts issuing corporate bonds, there will never be a failure to issue.

The core reason behind this is that corporate bonds are all underwritten by the balance of securities dealers.

An investment banker who has handled a corporate debt project said that the "balance underwriting" is the market practice of the securities company's underwriting corporate bonds. However, once the securities companies are forced to take over the bonds in the course of issuing the corporate bonds, the issuing fees charged by the securities dealers must be higher than the normal selling rates.

Wind information shows that since the beginning of this year, Guotai Junan Securities, Dongfang securities, CAITONG securities, Everbright Securities (601788.SH), goufa securities (000776.SZ), Guoxin Securities, Hongta securities, Ping An Securities, CITIC Securities (600030.SH), CITIC construction investment bank, UBS Securities, Yangtze River Certificate (000783.SZ), Xingye securities (601377.SH), Southwest Securities (600369.SH), China Merchants Securities (600999.SH), CICC and BOC 17 brokerages have successfully shared a 97 billion 420 million yuan corporate bond feast.

But so far, no broker has been exposed to the "company debt underwriting" dilemma.

A person who has been immersed in the capital market for many years said that, on the one hand, because the holders of corporate bonds need not be disclosed, on the other hand, the securities companies themselves do not want their potential customers to question their underwriting ability. The two factors add up to the fact that the outside world has never been able to know the specific circumstances of the company's "surplus underwriting".

But there are indications that 000776.SZ has suffered underwriting of corporate bonds this year.

Wind information shows that since the beginning of this year, GF Securities has acted as the leading underwriter in handling the corporate bonds of 600460.SH, Zhongfu Industrial (600595.SH), Kangmei Pharmaceutical (600585.SH), Hainan Airlines (600221.SH), National Science and Technology (002093.SZ) and Dongguan holding company.

In the process of underwriting these 6 corporate bonds, GF Securities is impressed by Hainan airlines' debt.

In May 20, 2011, Hainan Airlines received the approval of the SFC and was allowed to issue "no more than 5 billion yuan of corporate bonds".

According to the Hainan airlines' corporate bond prospectus, 5 billion yuan bonds will be divided into two varieties of 5 - year and 10 - year period, and HNA will provide full guarantee.

The final issuance shows that the 5 year period 11 HNA 01 (122070.SZ) bond raising amount is 3 billion 560 million yuan, and the 10 year 11 HNA 02 (122071.SZ) bond raising amount is 1 billion 440 million yuan.

According to an authoritative source, GF Securities underwrote part of corporate bonds and was forced to become a creditor of Hainan airlines.

GF Securities reported in mid 2011, GF Securities held 412 million Hg 01 and 261 million HGV 02, accounting for 13.46% of Hainan Airlines's 5 billion yuan corporate debt of $11.

By the end of 6, GF had accumulated a loss of 820 thousand yuan on 11 HNA 01 and 11 HNA 02.

Surprise interest rate upside down

In addition to letting underwriting brokerages fall into "underwriting", a direct consequence of tight corporate bond market is that corporate bond interest rates are rising day by day.

Wind information shows that at the beginning of this year, the annual interest rate of corporate bonds was only 5%, but since then, it has been on the upward trend of volatility. In September 16, 2011, when its shares were listed, its corporate debt reached a peak value of 7.5%.

The rapidly rising corporate bond interest rate is obviously beyond the expectation of some listed companies.

Jiaozuo Wanfang (000612.SZ) announced the prospectus of corporate bonds in August 10, 2011. At that time, Jiao Zuowan said, "at present, the 3 to 5 year bank loan interest rate is 6.65%, and the comprehensive cost of this bond issuance is expected to be significantly lower than that of the bank loan interest rate of the same period". However, after the inquiry of the coupon interest rate to the institutional investors the next day, Jiaozuo Wanfang's corporate bond interest rate was finally determined to be 6.7%, far exceeding the forecast of the previous day.

Before long, a listed company raised funds to replace bank loans, often playing the role of "two birds with one stone", reducing financial costs and adjusting debt structure at the same time.

But now, the high corporate bond interest rate makes the effect of "two birds with one stone" become a luxury.

Take Dongguan holding (000828.SZ) as an example, its corporate bond issuance scale is 700 million yuan, of which the 3 year period is 400 million yuan, the 5 year variety is 300 million yuan, the interest rate is 7.25% and 7.4% respectively.

Of the 700 million Dongguan corporate bonds, 300 million yuan will be used to repay short-term bank loans.

But Dongguan holdings is helpless to find that some of its initial bank loan interest rates are far lower than its corporate bond interest rates.

For example, in May 13, 2011, Dongguan holdings held a debt of 100 million yuan to the Bank of China Dongguan branch, with a term of one year short term loan and interest rate of only 6.31%. In the early December 10, 2010, Dongguan holdings raised 50 million yuan to Dongguan agricultural commercial bank Nancheng sub branch, and the interest rate even dropped to 5.562%.

This means that once the Dongguan holding company replaces the above bank loans through the collection fund of corporate bonds, it will increase the financial cost of listed companies, and the only benefit is to solve the problem of short-term liquidity.

In this regard, Dongguan holding manager Huang Yong has his own experience.

Huang Yong told our reporter that if we look ahead, the interest rate of corporate bonds is higher than the interest rate of some bank borrowers, but if we look back later, these bank loans will soon expire. If the company applies for loans to banks again, the interest rate of bank loans must be far higher than the interest rate of corporate bonds.

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Corporate debt survey: the operating tips behind the "green channel"

In addition to repayment of bank loans, A listed companies will also specify another use of corporate bonds this year: supplementary liquidity.

"The company's debt has become the preferred way of financing for listed companies, and more importantly, it is hard to predict that the green channel will not exist next year. Therefore, many listed companies are considering that they should reserve enough cash to prepare for a rainy day".

In addition to reimbursing banks and replenish liquidity, the vast majority of listed companies do not specify third uses of corporate bond raising funds, but a few listed companies are exceptions, such as western mining (601168.SH) and comprehensive arts shares.

In February 17, 2011, the 4 billion yuan corporate bonds of the western mining industry were listed, and the western mining industry claimed that "1 billion 500 million yuan will be used in the ERON copper mining and smelting project, the mining and selection project of each Qi Polymetallic Mine and the 3 fixed assets investment projects of the 2 million tons / year copper mining and extension project of each Qi ore".

For the above three investment projects, the western mining industry even made a profit forecast, that is, the total annual profit after the year is 97 million 140 thousand yuan, 135 million 300 thousand yuan and 57 million 740 thousand yuan respectively, and the corresponding payback period is 10.72 years, 10.22 years and 8.6 years respectively.

As for the remaining 2 billion 500 million yuan, western mining claims to "replenish working capital and future possible acquisition and merger projects".

There is also a clear explanation of the investment of corporate bonds raised by general manager.

The corporate bond prospectus shows that its initial offer is "no more than 1 billion 500 million yuan of corporate bonds", of which 192 million yuan is used to repay bank loans, and the remaining proceeds will be used to supplement liquidity. It is mainly used for the construction of photovoltaic power plants overseas. For example, the construction of 19MW photovoltaic power plant in New Jersey, USA, which is signed in May 28, 2011 by Effisolar and Energy Corporation, the total investment of the project is estimated to be around $80 million.

"The regulatory authorities do not have a rigid provision for the investment of corporate bonds raised funds, that is, listed companies generally indicate that they can repay bank loans and supplement liquidity, but from the perspective of public investors, those bonds that indicate specific funds invested in the fund are undoubtedly more attractive."

"A listed company in the west," says Dong Yun.

Bond debt service pressure

After the corporate bonds have been successfully raised, the listed companies are facing the problem of debt service.

Wind information shows that the duration of issuing corporate bonds by A share listed companies ranges from 2 years to 15 years, but the majority of corporate bonds have a maturity of more than 5 years.

However, since the corporate bond market in the A share market has a short history, since the issuance of 600900.SH in September 24, 2007, it has only gone through 4 years of history, and the duration of corporate bonds is generally relatively long. So far, the company bonds issued by A share listed companies only have a maturity of the Ninghu high speed (600377.SH) company, and the A share listed companies have not yet appeared to be unable to repay their principal and interest.

But in the short history of corporate bonds, some investors still suffer a moment of alarm.

In October 20, 2010, Panzhihua Iron and steel vanadium titanium (000629.SZ) announcement said that due to the company's losses for two consecutive years in 2008 and 2009, the company's 1 Party (115001.SZ) bonds, which can be separated from Switching Company bonds, will be suspended in October 21st.

Fortunately, the suspension of listing did not last for a long time. With the net profit of vanadium titanium in Panzhihua Iron and Steel Co., Ltd. in 2010, 1 billion 60 million yuan net profit, steel vanadium debt 1 quickly resumed listing in April 6, 2011.

In addition, in 2010, there were 08 broad paper debt (122999.SH), 06 Shanghai Water Affairs (120607.SH) and 08 Hunan nonferrous metals (088043.SZ) being suspended from the stock exchange.

As the only listed company that has a maturity of corporate bonds, 600377.SH has no doubt that it has "sample" meaning in paying interest and principal of corporate bonds.

As early as 2008, the rating of "AAA" class bonds at the top of Ninghu Expressway successfully sold 1 billion 100 million yuan of 08 Ningbo Shanghai debt (122010.SH), which was fully guaranteed by the Jiangsu branch of the Construction Bank. The main fund-raising fund would be for working capital, with a term of 3 years and maturity date of July 28, 2011.

But when the calendar turned to 2011, Ninghu Expressway faced 1 billion 100 million yuan debt repayment pressure is not easy.

2011 semi annual report shows that Ninghu Expressway accounts for only 488 million yuan of monetary funds, which is a huge gap from the debt fund of 1 billion 100 million yuan which is about to expire.

To add insult to injury, the Ninghu expressway has issued 1 billion yuan short-term financing coupons in 2010. The maturity date is August 16, 2011, which is almost the same as the 3 year maturity of corporate bonds.

However, Ninghu high speed has long been the answer, that is, "borrowing new and returning to old".

In July 6, 2011, Ninghu Expressway successfully issued 1 billion yuan short-term financing coupons, issuing interest rates of 5%. In the first phase of the short term prospectus issued in 2011, Ninghu Expressway admitted that the company's "short-term loans and long-term loans due within one year were 3 billion 640 million yuan, facing a certain short-term repayment pressure".

Then in September 26th of that year, ningliu high speed continued to make efforts, and issued another second short term 1 billion yuan in 2011, with a 6.18% interest rate.

"In the 1 billion short period of July 6, 2011, some of them took the 3 year debt repayment."

Ninghu high speed securities representative Jiang Tao told our reporter, but he also stressed that the company has ample cash flow and strong bank credit support, the fundamentals are very good.

"If a listed company is not expected to repay the bond interest on time, it will take at least four measures to protect the interests of the bondholders. One is not to distribute profits to shareholders, the two is to postpone major investments, the three is to reduce executive pay, and the four is that the main responsibility can not be pferred from the post."

One investment bank official said.

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Behind the bond credit rating

Corporate debt survey: the operating tips behind the "green channel"

In fact, it is probably not a good reference for domestic rating agencies to assess the default risk of each company debt that may not be debt service.

The reporter noted that in the corporate bonds issued by A share listed companies, the rating given by domestic rating agencies has only been raised since the date of corporate bond listing, and there has never been any downgrade.

An interesting episode is Wind information shows that the 08 rating of 122012.SH's issuer 600048.SH has suffered a brief downgrade.

Wind information shows that in June 2, 2008, the evaluation of the integrity of the securities company's rating was AA+, but in July 8th of that year, the main rating was downgraded to AA. Thereafter, in March 12, 2009 and March 18th, the China integrity securities assessment company maintained the AA rating of the 08 Baoli debt Issuance body, until the July 27, 2009, when the credit rating of the issuer increased to AA+.

However, the staff of the Chengxin securities appraisal company affirmed that the rating of the 08 Baoli debt was initially rated at AA, and then increased to AA+. "It should be Wind information that is wrong, because there has never been any rating reduction in Baoli real estate."

In fact, even some apparently defective corporate bonds are very good in the eyes of domestic rating agencies.

In October 19, 2011, the construction investment energy (000600.SZ) 450 million yuan corporate bond was listed. At that time, the construction investment energy just reported losses, the net profit attributable to the parent company was -1003.6 million yuan, and the conclusion of the securities research fellow Shao Minghui of China post is that "the issuer has the ability to repay the debt in general, and the strength of the guarantee Party is strong".

However, the China integrity securities assessment company gave the AAA rating to the construction investment company's debt, and gave the AA rating to the issuer to build new energy.

The evaluation report of the China integrity securities assessment company shows that the AA rating reflects the strong ability of the construction investment energy to "repay debts", which is less affected by the adverse economic environment, and the risk of default is very low.

It is worth noting that the perspective of overseas rating agencies is quite different from that of domestic rating agencies.

Taking Huaneng International (600011.SH) as an example, in 2006, the main rating of standard & Poor's on Huaneng state was BBB, but in July 16, 2011, the China credit international credit Rating firm took the lead in standard and poor's, started credit rating to Huaneng International, and its main rating to Huaneng International was AAA. At this point, Huaneng International 6 billion yuan corporate bonds are ready.

Why is Huaneng International Credit Rating far higher than that of overseas rating agencies? For this reason, Jia Wenxin, the representative of Huaneng International Securities, responded in September 19, 2011, "standard and poor's rating system is different from that of Zhongxin international credit Rating firm."