The difference between corporate bonds and corporate bonds;
1, they are different in nature. Corporate bonds are bonds issued by companies, and ppn is a non-public debt financing tool.
2. The distribution targets of the two are different. Corporate bonds are issued to unspecified public, and ppn is issued to specific institutions in the interbank market.
They have different requirements for issuers. The issuer of corporate bonds must be a joint-stock company, and the issuer of ppn should be a non-financial institution with legal personality.
Extended data:
Corporate bonds are bonds issued by joint-stock companies to raise funds from the public. Securities that show the creditor's rights of a company are called corporate bonds. The issuance of corporate bonds shall be decided by the board of directors, and a prospectus shall be prepared and submitted to the competent authority for approval. Corporate bonds have a prescribed format, which should be numbered and the relevant matters of issuing corporate bonds should be indicated on the back. Registered bonds is different from registered bonds-free, secured corporate bonds and unsecured corporate bonds. Corporate bonds have a fixed interest rate, and the income is generally unchanged. Bondholders are only creditors of the company and cannot participate in the same business decision. Bonds should be repaid at maturity. When the company is dissolved, bondholders have priority over shareholders to pay off the company's property.
When corporate bonds are issued, there are usually three parties:
1, card issuing company
2. Bondholders or creditors
3. Trustee. The so-called trustee refers to the bank or trust company designated by the issuing company to protect and serve the bondholders. As the supervisor of the issuing company's performance of contractual obligations, the entrusted labor service acts as the agent for the issuing company to repay the principal and interest on schedule, manage the repayment funds and hold the collateral.