China's first convertible debt issuance scale of 700 million yuan

Health Yuan announced that the board of Directors of the company approved the issue of an exchange of debt bill on 9th. Health Yuan will issue up to 6 years, 700 million yuan of the scale of the exchange of debt, to no more than 40 million shares of the pearl A-share to guarantee.　　This is the first negotiable bond issue in the history of China's securities. The health yuan holds nearly 43.3859% of the company's shares, the current proposed exchange of debt to the size of 700 million yuan, in accordance with the provisions of the exchange of debt, the issuance of the prospectus is not less than the price of the announcement of the 20th trading price of 70%.　　Assuming that according to the current average price of the latest pledge, the health yuan will take up about 40 million shares of the pearl A-share to guarantee.　　Health Yuan in the announcement that the biggest risk of the exchange of debt is in the future issue 36 months after the return period, if there is similar to the 2008 stock market a significant unilateral fall, will make the health yuan to face the pressure of the sale.　　A convertible bond is a convertible debenture that is issued by the shareholders of a listed company in accordance with the law and can be exchanged for the shares of a listed company held by the shareholder under the stipulated conditions within a certain period of time. Exchangeable bonds and current market convertible bonds, corporate bonds are different, convertible bonds for listed companies directly issued, in the future can be converted into a listed company's own shares; corporate bonds can be issued by listed companies, but also other qualified companies to issue, and the exchange of bonds only the shareholders of listed companies have the conditions to issue　　, because in the process of issuing, must use the stock of listed company to carry on pledge guarantee and preparation exchange. Compared to convertible bonds, the exchange of debt is due to the issuance of shareholders of listed companies, compared with the advantages of not thin shares of the company, convertible debt investors can be converted into a listed company's own shares in the future, but the exchange of debt system investors in the future into the shares of listed companies (issuer subsidiaries), the similarity is that both are embedded options,　　The future can be converted or exchanged for a listed company's shares, can be set similar to the downward Amendment clause, and can set up redemption and sale of funds why to issue exchangeable debt? Compared with corporate bonds, exchangeable bonds have the same means as exchange debts, but the difference is that they can exchange debts and have the power of exchanging shares, and their debts contain the price of similar stock exchange certificates.