2. There are different ways to raise funds: public debt is raised through public offering, and private debt is raised through non-public offering.
3. Different information disclosure requirements: Public bonds have very strict requirements for information disclosure, and information such as their investment objectives and investment portfolios should be disclosed. Private debt, on the other hand, has low requirements for information disclosure and strong confidentiality.
4. Different investment restrictions: Public offering bonds have strict restrictions on investment varieties, investment proportion and matching between investment and fund types, while private placement bond's investment restrictions are completely stipulated by the agreement.
5. Different issuance methods: the public offering bonds are publicly issued on the Shanghai Stock Exchange and Shenzhen Stock Exchange, and filed in private placement bond, and the underwriters can file in the Shanghai and Shenzhen Stock Exchanges. The Exchange shall review the completeness of the filing materials and decide whether to accept the filing within 10 working days. The issuer needs to complete the issuance within 6 months after obtaining the notice of filing acceptance.
Private Placement Bond
Private placement bond bonds can be divided into public bonds and private placement bond bonds according to the issuance methods. Private placement bond is a bond raised by a few investors who have a specific relationship with the issuer, and its issuance and transfer have certain limitations. Private placement bond's issuance procedure is simple, so it can't be traded in the securities market. The distinction between public offering bonds and private placement bond in European market is not obvious, but it is very strict and important in American and Japanese bond markets.
Public issuance of bonds
Public issuance of bonds is private placement bond's symmetry. Bonds issued by companies to the public. Bonds publicly issued can be underwritten or sold on a commission basis through intermediaries. Underwriting means that the underwriter sells all bonds within the agreed time, and the unsold part is subscribed by the underwriter; Consignment means that the agent tries his best to sell bonds, but the seller does not guarantee that all bonds will be sold. When the agreement expires, the agent will return the unsold bonds to the issuer. When issuing public bonds, we must follow the information disclosure system to ensure the interests of investors; Obtain approval from relevant departments (such as the Securities and Exchange Commission); After being rated by a recognized credit rating agency, the issuance conditions of bonds with different credit ratings are different.