Overview of public placement bonds are classified according to the way the bonds are issued, and can be divided into public placement bonds and private placement bonds.

Publicly offered bonds refer to bonds that are publicly issued to the public and can be purchased by any investor. They are bonds that are publicly raised to an unspecified majority of investors and can be transferred on the securities market.

It corresponds to private placement bonds.

Publicly offered bonds refer to bonds that are publicly issued in the market with the approval of the securities regulatory authority in accordance with legal procedures.

Subscribers for such bonds can be anyone in society.

Issuers generally have high credibility, and issuing public bonds helps improve the creditworthiness of the issuer.

Except for government agencies and local public organizations, generally private companies must meet specified conditions before they can issue public bonds.

Since the issuance target is an unspecified and widely dispersed investor, issuers are required to comply with the information disclosure system, provide investors with various financial statements and information, and submit securities declarations to the securities authorities to protect investors.

Interests.

Overview of Private Placement Bonds Private placement bonds are bonds raised from a small number of investors who have a specific relationship with the issuer, and their issuance and transfer have certain limitations.

The issuance procedures for private placement bonds are simple and generally cannot be traded on the securities market.

It corresponds to public offering bonds.

The distinction between public bonds and private bonds is not obvious in the European market, but in the bond markets of the United States and Japan, this distinction is very strict and very important.

When issuing public bonds in Japan, a "Securities Declaration" must be submitted to the relevant departments, and a report reflecting the situation in the country where the bond is issued must be submitted to the Japanese government every fiscal year after the new bond is issued.

In the United States, when issuing public bonds, a "Registration Statement" must be submitted to the Securities and Exchange Commission. The purpose is to provide a wide range of investors in the society with information about the bonds and their issuers to facilitate investor supervision and review.

, thereby better safeguarding the interests of investors.

The issuance of private placement bonds has certain restrictions compared to public placement. The targets of private placement are a limited number of professional investment institutions, such as banks, trust companies, insurance companies and various foundations.

The securities regulatory authorities of the country where the general issuance market is located do not have clear regulations on the number of private placement targets, but in Japan, it is stipulated that it should not exceed 50 companies.

These professional investment investment institutions generally have experienced experts and have the ability to fully investigate and research bonds and their issuers. In addition, the issuers and investors are relatively familiar with each other, so there is no requirement for public display, that is, private placement issuance does not require

Adopt an open system.

The purpose of purchasing private placement bonds is generally not to resell them, but to retain them as financial assets.

Japan has certain regulations on the resale of private placement bonds, that is, they cannot be transferred within two years after issuance. Even if they are transferred, they can only be transferred to investors in the same industry.