What is the difference between a convertible bond for a separate transaction and a general convertib

The convertible corporate bonds of the separation transaction are the separation of stock options and creditor's rights, so when converted, the part of the stock options is written off, while the ordinary convertible corporate bonds are directly converted into shares, so the book value of the convertible corporate claims written off when converting **;

If the convertible bonds of the separation transaction are not exercised at maturity, the part originally included in the "capital reserve - other capital reserve" shall be transferred to "capital reserve - equity premium" at maturity, while the ordinary convertible company claims will only be converted into the relevant part of the "capital reserve - other capital reserve" converted to "capital reserve - equity premium", and the part that is not converted to ** will not be carried forward.

For the convertible corporate bonds of the separation transaction, in fact, on the basis of the above two rights, there is an additional right, namely: "stock option", the so-called stock option is the right to purchase the issuer according to the agreed time, which is the difference from ordinary convertible corporate bonds.

Therefore, for the convertible corporate bonds that are separated from the transaction, in fact, a ** option is added on the basis of the general convertible bonds, giving investors more choices. The benefits for listed companies are, on the one hand, to raise funds, and on the other hand, to attract potential investors.

The general convertible corporate debt is gone after the bond is converted, while the convertible corporate bond of the separate transaction is part of the convertible corporate bond converted into equity and part of the bond continues to be held as a bond, and the bond interest can continue to be obtained.

First, the nature is different.

1. Detachable bonds: Detachable bonds, also known as corporate bonds with warrants, refer to the listed company with warrants at the same time as the issuance of corporate bonds, which is a combination of corporate bonds and warrants.

2. Convertible bonds: Convertible bonds are bonds that bondholders can convert into ordinary bonds of the company in accordance with the agreement at the time of issuance.

Second, the advantages are different.

1. Detachable bonds:

1) The issuance scale of a single detached convertible bond is large, which is an encouragement method of the CSRC, so it is easy to be approved by the issuance examination committee;

2) After the gift of equity warrants, the debt financing cost of the separated convertible bond position is lower, so it can be seen that more than half of the maturity of the separated bond is 6 years;

3) The premium of warrant exercise ** is generally higher than that of traditional convertible bonds, with the premium of Tangsteel and Wuhan Iron and Steel being as high as 20%, the cost of equity financing is reduced, and the company can make the final equity dilution ratio not directly related to the size of the issuance through the control of the exercise ratio, and the company's room for control increases;

4) If the equity warrants are exercised last, the company is equivalent to achieving two financings.

2. Convertible bonds: The interest rate of convertible bonds is generally lower than the bond interest rate of ordinary companies, and the issuance of convertible bonds by enterprises can reduce the cost of financing. Holders of convertible bonds also have the right to sell the bonds back to the issuer under certain conditions, and the issuer has the right to forcibly redeem the bonds under certain conditions.

Because this stock picking technique specifically selects those that stabilize before the take-off. Therefore, when the general trend is stronger, this type of ** often has the bottom of the band profit, no matter whether it is big or small in the future, and whether it is ** or reversal, investors can deal with it freely. At this time, investors can choose the time to sell according to the results of the general trend. 63

It's okay, it's not particularly outrageous. 28

1.The cost of issuance is different, both of which have the effect of promoting bond issuance and reducing the interest rate of bonds (with stock options), and the issuance cost of convertible bonds is high because they are composed of two parts: bonds and warrants.

2.Convertible bonds can be separated to achieve secondary financing. Generally, when convertible bonds are converted into **, there is no need to pay the purchase price of shares, and the funds are the cost of the initial purchase of bonds, and only one financing is realized.

When the convertible bonds of the separation transaction are exercised, the subscription price must be paid again. Achieved secondary financing.

3.The determinants of stock subscriptions are different. Generally, the number of shares subscribed for convertible bonds depends on the par value and conversion price of the convertible bonds, and the convertible bonds for separate transactions mainly depend on the provisions of the stock options, and have nothing to do with the value of the bonds.

4.Duration inconsistencies. Generally, the duration of convertible bond options is the same as that of bonds, but the duration of the warrants of the convertible bonds traded separately does not exceed the duration of the bonds, and it is not less than 6 months from the date of the end of the issuance.

5.The impact on the debt and equity structure of the issuing enterprise is different, and generally after the implementation of the convertible bond stock subscription, the debt of the issuing enterprise will be reduced and the equity will be increased; The bond portion of the segregated convertible bond continues to exist until it is repaid. The exercise of the stock option will increase the interest.

6.The conditions are inconsistent. There are no reset and redemption clauses for segregated convertible bonds.

Convertible bonds are called convertible corporate bonds.

In the current domestic market, it refers to bonds that can be converted into corporate ** under certain conditions.

Convertible bonds have the dual attributes of debt and options, and their holders can choose to hold the bonds at maturity and obtain the company's repayment of principal and interest;

You can also choose to convert to ** within an agreed period of time to enjoy dividend distribution or capital appreciation.

Therefore, the investment community generally jokes that convertible bonds are the guarantee of principal for investors.

There is no essential difference between the two, the difference between options and warrants is that they are standardized, while warrants are more arbitrary.

To be honest, this question is a bit difficult. 82

Convertible bonds.

with warrants attached.

Difference Between Bonds: The difference between a convertible bond and a warrant is that a convertible bond is converted into common stock at maturity.

There will be no increase in the company's capital, and when the warrants are used, the original issued corporate bonds will not be recovered.

As a result, the inflow of funds into the company can increase. The difference between convertible bonds and warrants is that convertible bonds converted into common shares at maturity do not increase the company's capital. When using warrants, the original corporate bonds issued by Mengsong will not be recovered, so the inflow of funds into the company can be increased.

A warrant is a call option issued by a share **** to subscribe for its shares. It gives the holder the right to purchase certain ** of the issuing company for a certain period of time with a predetermined **. For financing companies, the issuance of warrants is a special way of financing.

The warrants themselves contain option terms. Before subscribing for shares, its holders have neither claims nor interests in the issuing company, and only have the right to subscribe for shares. However, the issuing company can raise cash by issuing warrants, which can also be used as compensation to the underwriters at the time of incorporation.

A warrant is usually issued by an issuer with specific conditions. From a legal point of view, a warrant is essentially a contract of rights. After paying a premium for the purchase of warrants, the investor has the right to subscribe or a certain amount of the target asset at an agreed date of a specific term or maturity.

Warrants trading is actually a type of options trading.

As with all options, the warrant holder acquires a right, not an obligation, upon payment of a premium, and it is at the discretion of the warrant holder whether to exercise that right; When the holder of the warrant is required to perform in accordance with the regulations, the warrant issuer is obliged to provide performance and shall not refuse.

A warrant is a certificate issued by a listed company, and its holder has the right to purchase a certain number of new shares issued by the company for a certain amount of time within a certain period of time. Convertible bonds are designed to increase attractiveness and allow holders to choose bonds that can be converted into shares of the company within an agreed period. Since there is no increase in new shares, there will be no new additions**.

1.**The types are different, 2The direction is not the same as the lead, 3The degree of impact of good economic decisions is also different.4The interest rate on bonds is not the same, 5Future divination decisions are also inconsistent.

1.The convertible bond of the separate transaction is a hybrid financing variety of bonds and **, and the essential difference between it and ordinary convertible bonds is that the bonds and options can be separated from the transaction.

2.The separation of convertible bonds without resetting and redemption clauses is conducive to giving full play to the positive role of the issuing company in promoting the conversion of shares through performance growth, and avoids the damage caused to investors by ordinary convertible bond issuers who often promote the conversion of shares by continuously revising the conversion price downward or forcing redemption instead of improving the company's operating performance. In addition, if the listed company changes the use of the funds raised in the announcement, the holders of the convertible bonds of the separation transaction and the holders of ordinary convertible bonds are also given the right to sell back at one time, thus greatly protecting the interests of investors.

3.The stock options in ordinary convertible bonds generally mature at the same time as the bonds, but this is not the case for convertible bonds that are traded separately. "The duration of the warrants shall not exceed the term of the corporate bonds, and shall not be less than six months from the date of the end of the issuance", because the warrant separation transaction leads to increased market risk, and shortening the duration of the warrants helps to reduce speculation.

Convertible bonds with warrants are a kind of corporate bonds with warrants, which can be separated into two parts: pure debt and warrants, giving listed companies the opportunity to issue two financings at one time. Convertible bonds are a hybrid financing variety of bonds and **, and the essential difference between it and ordinary convertible bonds is that bonds and options can be traded separately.

The Administrative Measures for the Issuance of Listed Companies issued at the end of 2006 for the first time listed convertible bonds for separate transactions as a refinancing product for listed companies, and made more specific provisions on their issuance conditions, issuance procedures, and terms setting.

Differences: First, the cost of issuance funds is different.

The stock options of both have the effect of ** corporate bonds and reducing the interest burden of the issuing company, because the ordinary convertible bond itself is only one product, and the separable convertible bond is more similar to the two products, so the issuance cost of the ordinary convertible bond is usually lower than that of the convertible bond of the detachable transaction.

Second, the amount of investors' funds occupies is different.

For investors, the exercise of the options attached to the separable convertible bonds must be repaid; Ordinary convertible bonds do not need to pay shares when they are converted into **, and the investment funds are easier to control. Therefore, investing in detachable convertible bonds and exercising them will occupy more of the investor's capital.

3. The existence or non-existence of redemption clauses is different.

The separation of the warrants and corporate bonds of the separable convertible bonds after listing makes it impossible for companies issuing separable convertible bonds to force or restrain investors to exercise their rights with any issuance terms, but can only use some strategies to induce investors to exercise their rights in advance. For ordinary convertible bonds, a redemption clause can be used to force investors to exercise their conversion rights.

Fourth, the impact on the financial structure of the issuer is different.

When ordinary convertible bonds are converted**, the company's liabilities are naturally reduced. However, even if the rights are exercised, the issuer's debt to the bonds will continue until the maturity of the bonds.

Fifth, the proportion of exercise is different.

The par value of the convertible bond and the conversion price determine the number of shares that can be converted, while the convertible bonds that can be separated from the transaction are subscribed for new shares according to the exercise ratio stipulated in the terms, and the number of shares subscribed has nothing to do with the face value of the bonds, but only the provisions of the contract terms.

Sixth, the transaction form is different.

Separable convertible bonds are two types of valuable issuance for issuers**; The issuance of ordinary convertible bonds is a kind of valuable**.

7. The duration of the stock options is different.

Among the separable convertible bonds to be launched in China, the duration of the warrants is shorter than that of corporate bonds, so the probability of the warrants being in the money is lower than that of the warrants of ordinary convertible bonds, and the time value will account for a greater proportion of the warrant value.

First of all, when the former converts bonds, it will become a general disaster, but it will not increase the total capital of the company; However, in the process of using the latter, the original company will not be recovered, and then it will flow into the company's original assets.

There are different trading methods, and there will also be different daily coarse ear periods and restrictions. It is also possible to increase different capitals, have different stools and different usufruct rights, and also have different ways of expression. Hail.

The operation of these two bonds is different, the income obtained is not the same, the transaction mode is not as good as Qing, the profits obtained are not the same, and the impact on personal assets is not the same, which is the difference between the two bonds. Pick up the oak barricade.