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Short-term Financing Bonds

Short-term financing bonds refer to the bond financing instrument issued by the non-financial enterprises with legal person qualification in the inter-bank bond market who promise to repay the principal and pay the interest within one year. The short-term financing bond provides enterprises with a kind of short-term direct financing instrument and will help them optimize financial structure and reduce financing cost.
The short-term financing bonds are characterized by flexible issuance mechanism. After the approval of short-term financing bond registration of enterprises by the National Association of Financial Market Institutional Investors, the enterprises may decide the issuance timing and the maturity structure of short-term financial bonds in a flexible manner based on the market interest rate, the supply-demand situations as well as the inherent financing need and cash flow.
By issuing short-term financial bonds and regular disclosure of financial information, enterprises may build a sound credit reputation in the capital market, which sets up a foundation of solid credit standing for its continuous financing, long-term bond financing and the equity financing in the future.
Different from the mechanism that enterprise bonds are issued by agencies of the central governmental departments, solely state-owned enterprises or state-controlled enterprises and corporate bonds are issued on a pilot basis by listed companies. The issuer of short-term financing bonds covers a larger scope of enterprises; all of the non-financial enterprises with legal person qualifications can issue short-term financing bonds. At present, the enterprises with generally a net asset of more than RMB1.5 billion have the right of issuance.

Note: Please contact your local branch for detailed information about the service.

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