1, with wide sources of funds.

International bonds are raised in the international securities market and issued to investors in many countries. Therefore, their sources of funds are much wider than domestic bonds. By issuing international bonds, issuers can flexibly and fully fund their construction projects and other needs.

2. The issuance scale is large.

The scale of issuing international bonds is generally large, because one of the purposes of borrowing such bonds is to take advantage of the extensiveness and adequacy of the sources of funds in the international securities market. At the same time, since issuers must be rated by international credit rating agencies when entering international bond markets, only issuers with high reputation can successfully raise funds. Therefore, when the issuer's credit status is fully affirmed, huge loans can be realized.

3. There is exchange rate risk.

The funds for issuing domestic bonds, raising and servicing are all in local currency, and there is no exchange rate risk. When issuing international bonds, the funds raised are foreign currencies. Once the exchange rate fluctuates, both issuers and investors may suffer unexpected losses or gain unexpected gains. Therefore, an important part of international bond risk is exchange rate risk.

This is guaranteed by national sovereignty.

In order to raise money on international bond markets, sometimes you can get the guarantee of final payment from the government of a sovereign country. If such a guarantee is given, every international bond markets is willing to open to sovereign countries, which also makes international bond markets more secure. Of course, the government representing national sovereignty should also check and control the lending of domestic issuers in international bond markets.

5. Take a freely convertible currency as the measurement currency.

International bonds are issued in the international market, so their pricing currencies are often international currencies, and one is mainly US dollars, British pounds, German marks, Japanese yen and Swiss francs. In this way, the funds raised by the issuer are free foreign exchange funds that can be widely used.

Tips: The above information is for reference only.

Reply time: 202 1- 12-20. Please refer to the latest business changes announced by Ping An Bank in official website.