What Is a Corporate Debenture?

Corporate bonds are bonds that the stock company raises from the public by issuing bonds in order to raise funds. Securities that show corporate claims are called corporate bonds. Issuing corporate bonds is limited to joint-stock companies, and the target of raising is unspecified public. The issuance of corporate bonds shall be decided by the board of directors, and a debt collection statement shall be formulated and submitted to the competent authority for approval. Corporate bonds have a prescribed format, and they should be numbered and the relevant matters for issuing corporate bonds should be indicated on the back. There are different types of registered corporate bonds and bearer corporate bonds, secured corporate bonds and unsecured corporate bonds. Corporate bonds have a fixed interest rate and their returns are generally unchanged. Bondholders are only company creditors and cannot participate in joint management decisions. The bonds are repayable at maturity. When the company is dissolved, the owner of the bond will receive priority settlement of the company's property over the comparable shareholders. ^[1]

Corporate debt

Corporate bonds are bonds that the stock company raises from the public by issuing bonds in order to raise funds. Securities that show corporate claims are called corporate bonds. Issuing corporate bonds is limited to joint-stock companies, and the target of raising is unspecified public. The issuance of corporate bonds shall be decided by the board of directors, and a debt collection statement shall be formulated and submitted to the competent authority for approval. Corporate bonds have a prescribed format, and they should be numbered and the relevant matters for issuing corporate bonds should be indicated on the back. There are different types of registered corporate bonds and bearer corporate bonds, secured corporate bonds and unsecured corporate bonds. Corporate bonds have a fixed interest rate and their returns are generally unchanged. Bondholders are only company creditors and cannot participate in joint management decisions. The bonds are repayable at maturity. When the company is dissolved, the owner of the bond will receive priority settlement of the company's property over the comparable shareholders. ^[1]

Corporate debt

When corporate bonds are issued, there are usually three parties:

1.Issuing company

2,

1. The nature of the enterprise: a corporate enterprise.

2. Scale: Due to the large number of declared enterprises, the net assets of the enterprises in actual operation should be more than 1.5 billion yuan.

3. Profits: The annual average distributable profits achieved in the first three fiscal years of 2007 are not less than

1. Low interest rates and expenses: Interest rates are about two percentage points lower than bank loans during the same period. Issuance costs mainly include sponsorship and

First, corporate bonds are conducive to improving the capital market

1. Individuals who want to invest in corporate bonds must first open a securities account at a securities business outlet. When the corporate bonds are officially issued, they can buy and sell corporate bonds like stocks, but the minimum transaction amount is 1,000 yuan. Judging from the pilot issuance of bonds by the Yangtze River Power Company,

China

At the National Financial Work Conference in January 2007, senior leaders of the Chinese government resolutely stated that they must vigorously develop the corporate bond market, and the issuance system has shifted from the approval system to the approval system. The inter-bank market and other news fully reflect the signal from the China Securities Regulatory Commission to supervise corporate bonds.

At the Fifth Session of the Tenth National Committee of the Chinese People's Political Consultative Conference held in March 2007, the "Report on the Implementation of the 2006 National Economic and Social Development Plan and the 2007 Draft of the National Economic and Social Development Plan" proposed that the bond market foundation should be strengthened in 2007 We will build a sound institutional system, expand the scale of corporate bond issuance, and do a good job of piloting industrial investment funds. The development of the bond market will usher in historic new opportunities for development. A more transparent, open and innovative market can be foreseen. After the promulgation of corporate bond issuance management measures, the issuance of corporate bonds will open a new chapter.

Relevant regulations: Article 154 of China's "Company Law" states: "Corporate bonds referred to in this law refer to the securities issued by a company in accordance with legal procedures and agreed to repay principal and interest within a certain period of time." A legal relationship between the bondholders and the issuing company of the bonds has formed a debt and debt legal relationship with the principal and interest paid.