Wei Bridge Moved Six Consecutive Bonds &Nbsp; Bond Financing Is Getting Better.

Just finished 1 billion 500 million yuan short term.

This is the sixth time that Wei bridge has issued bonds since last year.

After the issuance of this issue, Wei bridge's total financing in the bond market over the past year will reach 7 billion yuan, and the balance of debt financing instruments to be repaid will reach 5 billion yuan.

It is not just the Wei bridge family that favours bond financing.

2, Xinwen Mining Group also announced the bond financing plan, will issue 800 million yuan in the 9 vote.

According to incomplete statistics from the Economic Herald reporter, since January this year, 11 enterprises have appeared in the bond market and the total amount of financing is nearly ten billion yuan.

"In the case of difficulties in bank loans, risks in private financing, and continued downturn in the stock market, the bond market has attracted more and more enterprises to finance because of the shorter bank loans, lower private financing costs and less risk than the stock market.

On the afternoon of 4, Professor Hu Jinyan, deputy director of the school of economics, Shandong University, and commentator of the guide, analyzed this way.

"A highly liquid and well functioning bond market plays an important role in improving the structure of the financial market, reducing the financing costs of enterprises, and providing diversified investment channels for enterprises," said an expert in the bond industry of the Chinese Academy of Social Sciences, an official of the 3 guide newspaper.

Wei bridge has issued 6 bonds since last year.

As the largest cotton spinning enterprise in the country, Wei bridge has a large scale of production and a strong demand for liquid capital.

The purpose of this issue is mainly to supplement liquidity.

Wei bridge disclosed that at present, the company has the capacity of producing 880 thousand tons of pure cotton yarn per year, and it needs to purchase about 900 thousand tons of lint per year, and it is estimated that the annual demand will be about 17 billion 820 million yuan.

Since October last year, the company has started the new cotton purchase plan. It plans to purchase 500 thousand tons of new cotton in the fourth quarter of last year and the first quarter of this year, and the estimated gold will be about 10 billion yuan.

The company will make use of the 1 billion yuan of this raised fund to concentrate on purchasing new cotton.

In addition, because the company has installed capacity of 2 million 870 thousand kilowatts of power assets, the cost of purchasing electric coal is also one of the main costs of the company.

At present, the company needs about 10 million tons of coal for the year. Due to the rise in coal prices, it is estimated that the annual procurement cost of electricity coal will increase by 700 million yuan, so the company will make use of the 500 million yuan of this raised fund to buy coal.

Since last year, Wei Qiao's financing density in the bond market has been particularly frequent. The issue of this issue is already the sixth issue.

Last year, Wei bridge issued 3 short term bonds and 1 intermediate votes, with a sum of 1 billion yuan and a total of 1 billion 500 million yuan.

In February 15th this year, Wei Qiao reissued the 1 phase of the 1 billion yuan short debt.

At present, Wei bridge still has 2 short-term financing bonds, and the 1 period is in the renewal period, with a total amount of 3 billion 500 million yuan.

After the issuance of the central issue, its renewal of direct debt financing tools will reach 5 billion yuan.

Besides Wei Qiao's frequent issuance of bonds, the financing path of its affiliated 01378.HK is also quite striking.

Wei bridge's huge aluminum oxide, electrolytic aluminum, aluminum and other aluminum assets.

In order to avoid competition from the same industry, from 2006 to 2010, Wei Qiao and its actual controller Zhang Shiping launched an asset consolidation, and aluminum assets were gradually loaded into China Hongqiao.

In March of last year, China's Hongqiao landed at the Hong Kong stock exchange. The net capital raised amounted to 6 billion 130 million yuan. It became the largest IPO in the HKEx.

At the beginning of this year, China Hongqiao continued its financing steps, and obtained a $200 million overseas financing loan with Morgan chase, which is also considered to be a way to reduce financing costs.

By February, the financing had been oversubscribed, attracting many institutional investors, including J.P. Morgan chase, Bank of Korea AG, Changhua bank, Taiwan Industrial Bank, Holland bank and China Development Industrial Bank.

Debt structure optimization

Why did Wei bridge sell frequently in the bond market?

The information disclosed by Wei bridge shows that cotton prices have plunged sharply in 2011, and the profitability of the company's main business has been affected.

In the first 3 quarters, the total business revenue was 44 billion 413 million yuan, an increase of 13.04% over the same period in 2010, but the operating profit was 2 billion 200 million yuan, down 8.24% from the same period last year.

The decline in profitability will undoubtedly increase the financing needs of Wei Qiao, which may be one of the reasons for its massive borrowing.

On the other hand, "highly mobile"

Wei bridge said in its earnings report that in addition to its own funds, short term loans and bills payable are the main sources of liquidity for the company.

However, as at the end of 2010, short-term loans and bills payable totals $6 billion 503 million, representing a decrease of 1 billion 325 million yuan compared with the end of 2009, resulting in a shortfall in liquidity.

After the issuance of bonds, in turn, the proportion of high cost financing such as short-term loans and bills payable has further declined.

By the end of September last year, the total liabilities of Wei Qiao had risen from 20 billion 336 million yuan at the end of 2010 to 22 billion 644 million yuan, but its short-term borrowing dropped from 4 billion 868 million yuan to 4 billion 351 million yuan, and the notes payable decreased from 1 billion 635 million yuan to 1 billion 489 million yuan, and liabilities such as accounts payable, long-term loans and long-term accounts have also decreased.

The two most obvious rise is the "other current liabilities" which reflect the short term debt, from no increase to 2 billion yuan; the other is the "payable bonds" that reflect the central issue, from no increase to 1 billion 500 million yuan.

The total debt ratio of the two companies is 8.83% and 6.62% respectively, thus greatly reducing the proportion of other debts.

The bond market has the most potential for growth.

In addition to Wei Qiao, Xinwen Mining Group, 2, said it will issue 800 million yuan in the vote, of which 500 million yuan is used to repay short-term loans, and 300 million yuan will be used to repay long-term loans.

Prior to that, it has issued 2 medium term votes, and the balance of the outstanding tickets is 2 billion yuan.

Since January this year, there are also 11 companies, including Yankuang Group, Huadian International (1.82, -0.04, -2.15%, real-time quotes), Rizhao Port, Shandong Dongming Petrochemical Group and triangle tire, which have issued bonds, including short fuse, medium ticket, corporate debt, corporate bonds and so on. The total amount of financing has reached 9 billion 700 million yuan.

If we add the financing plan of Wei Qiao and Xinwen Mining Group, the total amount of bond financing this year will reach 12 billion yuan.

"In the mature financing market,

At present, there are many institutional defects in the domestic bond market.

"For example, there are different departments in charge of corporate governance, corporate bonds, corporate bonds and short debt financing. There is a lack of relevant laws and regulations, and a clear idea of the overall development of the industry."

Hu Jinyan said, because of this, "in all kinds of financing market, the bond market is the most growth room, in the future financing of enterprises, it will play a more important role."