China CSG to issue 2 billion-dollar corporate bonds

October 18, China Southern Glass Group Co., Ltd. (CSG A,000012.SZ South Glass B,200012.SZ) issued a notice, in 2010 to issue no more than 2 billion yuan of corporate bonds to repay bank loans and supplementary operating funds.　　The above fund-raising will be used to develop the company's energy-saving glass, solar energy and other two major industries. It is reported that the issue of bonds issued each face value of 100 yuan, the issue period of not more than 7 years, divided into two varieties.　　One is 5-year bond, the second is 7-year bond, while the additional issuer increases the coupon interest rate option and the investor's right to return the sale. The issue of 2 billion yuan corporate bonds accounted for the company in the first half of 2010 to the parent company's net assets ratio of 36.05%. By issuing bonds, raising funds will be used to repay the bank short-term loans and supplementary operating funds, reduce short-term debt ratio, improve the company's liquidity ratio and speed ratio, reduce financial risk. But companies ' total liabilities and asset-liability ratios will also rise.　　The increase of the debt scale will bring some influence to the operation of the company.　　As of June 30 this year, the company's asset-liability ratio of 47.31%, better than the industry average; the company's liquidity ratio, quick ratio and other short-term debt-servicing indicators is slightly lower than the industry average. The issue of 2 billion yuan corporate bonds, will be used to develop energy-saving glass, solar energy two main industries. China's CSG bulletin said that during the period of the bond, the issuer of the flat glass business, the industry will face cyclical fluctuations in the operating risk. As the 2008 was affected by the financial crisis, the industry's demand shrank and overall losses.　　2009, the beneficiary real estate market recovery, flat glass prices rose sharply, the industry continued to improve profitability. During the issuance of bonds, the PV industry, one of the company's main industries, also has policy risks. Although China is the world's largest photovoltaic cell production, but the entire photovoltaic industry relies heavily on foreign countries, especially the European market demand. Coupled with the photovoltaic industry in the current technical conditions, the other energy industry does not have cost advantages, governments for the photovoltaic industry support efforts will directly affect the future development of the industry, that is, the company's photovoltaic industry has global policy risk. Photographer/Dr.