Separable bonds and convertible bonds

One 、 Concept

         The full name of separable bonds is also called “ Convertible corporate bonds with separate trading of warrants and bonds ”. It is essentially a convertible bond , But compared with convertible bonds in the general sense , Have a “ Separate trading of stock options and bonds ” Characteristics . Traditional convertible bonds have both debt and equity , The characteristic of the convertible bond with separate transaction is to realize the separation of debt and equity . It is a portfolio of bonds and warrants , It can be understood as buying bonds and sending warrants , That is to say “ Corporate bonds ”+“ warrant ”

Two 、 The difference between separable bonds and convertible bonds

1. The distribution costs are different , Both promote bond issuance , The role of reducing bond interest rates , The separate trading convertible bond is composed of bond and warrant , Therefore, the issuance cost is high .

2. Separate transaction convertible bonds can realize secondary financing . Generally, when convertible bonds are converted into stocks , There is no need to pay the share purchase money , Capital is the cost of initial bond purchases , Only realize one-time financing . When the convertible bond with separate transaction exercises the stock option , The subscription money must be paid again . Realized secondary financing .

3. Different determinants of share subscription . The number of shares subscribed for general convertible bonds , It depends on the face value of convertible bonds and the conversion price , Convertible bonds traded separately mainly depend on the provisions of stock options , It has nothing to do with the value of the bond .

4. Inconsistent duration . Generally, the warrant period of convertible bonds is the same as that of bonds , However, the warrant duration of the separated transaction convertible bond shall not exceed the bond duration , And no less than 6 Months .

5. The impact on the debt equity structure of issuing enterprises is different , Generally, after the execution of share subscription of convertible bonds , Reduce the liabilities of issuing enterprises , Increase equity ; The bond part of the convertible bond with separate transactions should continue to exist , Until repayment . The exercise of share options will increase equity .

6. Inconsistent conditions . Convertible bonds traded separately do not have reset and redemption terms .

3、 ... and 、 Comparison of separable bonds and convertible bonds

	Separable debt	Convertible bond
How it's issued	The original shareholders have priority in placing	The original shareholders have priority in placing
Face value	Part of the face value of the bond 100 element	100 element
Different from bonds	Equivalent to warrants + bond	Bonds with the right to convert shares
interest	The bond part has	Yes
Conversion characteristics	The characteristics of stock conversion are separated from those of bonds The bond part is equivalent to pure corporate bonds Warrants can be exercised to subscribe for shares	It can be converted into shares at a predetermined price within a specified period , Or don't turn
Can I trade in the secondary market	Bonds and warrants are traded separately	Sure
Whether reinvestment funds are needed when converting shares	When the warrant is exercised （ You can also have no right ） You must reinvest money to buy shares at the specified price , In essence, it is a warrant	Unwanted