Who is issuing dollar bonds?
Many China enterprises keep issuing US dollar bonds. Dr. Fu listed several well-known ones:
According to the report of China Business News, companies with the prefix "China" are all on the list. For example, Baosteel 20 13 issued $500 million bonds, CSSC 20 14 issued $800 million bonds, MCC 20 14 issued $500 million bonds, and State Grid issued two batches of * * *.
There are also internet companies with high exposure. For example, in 2065.438+02, Baidu issued $65.438+0.5 billion in bonds, and in 2065.438+04 and 2065.438+05, it issued $65.438+0.2 billion respectively. Tencent 20 14 issued $2.5 billion in bonds; Alibaba 20 14 issued $8 billion in bonds; In 20 16, JD.COM issued bonds of1500 million USD.
There are many companies that issue US dollar bonds, among which financial institutions account for the largest proportion, followed by the real estate industry.
Why issue dollar bonds?
Why does everyone have to get together from state-owned enterprises to private enterprises, from IT technology to monopoly industries?
1, high acceptance
Picky foreign investors still welcome high-quality corporate loans from China, and they recognize China's outstanding enterprises and their development prospects.
It's just that children's shoes may have no concept. When Dr. Fu shows you the rating, you will understand the children's shoes.
The three major rating companies in the United States are Standard & Poor's, Fitch and Moody's. For simplicity, let's take a look at the rating given by the famous Standard & Poor's.
Sinopec, one of the three barrels of oil, has such a rating:
Ma Yun's father's Baba (Alibaba Group), S&P also gave a good evaluation:
Even in JD.COM, which is still losing money, S&P's rating is not ugly:
2, the cost is low
Two factors have reduced the financing cost of overseas bond issuance.
On the one hand, the foreign low-interest environment reduces the coupon rate that issues bonds, that is, reduces the financing cost.
On the other hand, the exchange rate factor. The appreciation of RMB further reduced the cost of overseas financing.
Regarding the logic of exchange rate factors to reduce costs, Dr. Fu randomly took some figures, and children's shoes can feel it:
A company operating in China and earning RMB borrowed 1 USD at the interest rate of 3% (USD) for one year, and the exchange rate of RMB in 8 yuan was 1 USD at this time, and the company lost RMB in 8 yuan; After one year, the company should pay back USD 65,438 +0.03. After one year, due to the appreciation of RMB, the exchange rate changed to USD 65,438 +0 in 7 yuan, and the company only needs to pay back USD 7.265,438+RMB in 0 yuan. In other words, without considering other factors such as financing cost, the company borrows money in RMB with no interest at all, benefiting from the exchange rate factor. Although this example is exaggerated, children's shoes should feel the effect of exchange rate advantage in reducing costs.
On the other hand, it is reported that the overseas financing cost of China enterprises is still higher than that of other countries at the same level, which means that China enterprises still need to make efforts to increase information transparency and improve information disclosure methods.
3. Diversification of financing methods
In fact, the diversification of financing methods is also a major reason why companies have issued US dollar bonds.
In the tide of connecting with the world, honest and frank China enterprises are no longer limited to a single financing method, but enjoy various IPOs, issuing US dollar bonds, MBS and ABS.
In short, as a bond issued by China enterprises in overseas markets, the US dollar bond market has high acceptance and high credit spread. For investors, it is definitely a high-quality target to diversify investment, avoid risks and obtain absolute returns. (The article is taken from the Franklin Foundation of Guohai)