Our reporter Xing Meng
On December 27th, the Industrial Bank convertible bond subscription was opened. The corresponding underlying stock was Industrial Bank, with an issuance scale of 50 billion yuan, which was the largest A-share convertible bond in the year.
According to statistics from Oriental Fortune Choice, a reporter from Securities Daily said that as of December 27, a total of 117 convertible bonds were issued during the year, a year-on-year decrease of 46%; the scale of convertible bond issuance reached 282 billion yuan, an increase of 2.73% year-on-year.
Among them, the scale of convertible bonds of 5 banks reached 110 billion yuan, accounting for 39.36% of the total scale; they were respectively 50 billion yuan in Industrial Convertible Bonds, 20 billion yuan in Nanyin Convertible Bonds, 20 billion yuan in Shanghai Bank Convertible Bonds, and 150 billion yuan in Hangzhou Bank Convertible Bonds. 100 million yuan, and 5 billion yuan of convertible bonds of the Soviet bank.
From the perspective of the investment direction of the raised funds, taking Industrial Convertible Bonds as an example, the announcement shows that the funds raised from the issuance of convertible bonds will be used to support the future business development of Industrial Bank after deducting the issuance costs, and will be transferred to convertible bond holders. After shares, they are used to supplement core Tier 1 capital in accordance with relevant regulatory requirements.
“The frequent issuance of convertible bonds by banks shows that banks have obvious supplementary demands for core Tier 1 capital.” Chen Li, chief economist and research director of Chuancai Securities, told the “Securities Daily” reporter that the capital pressure of small and medium-sized banks is relatively high. Due to intensified market competition and macro-environmental pressure, bank profit growth has slowed down, and pressure on the disposal of non-performing assets has increased.
Chen Li further analyzed that since the epidemic, finance has increased its support for the real economy, the growth of bank assets has accelerated, and the ability to replenish capital with profit retention is limited; second, compared with other financing methods, convertible debt financing The cost is lower.
For issuers, the longer term of convertible bonds is more conducive to solving the problem of short-term funding constraints, and there is no need to consider the pressure of repayment in a short period of time; again, the regulatory policy puts forward higher supervision on banks that are included in the list of domestic systemically important banks Capital requirements, more banks are expected to put convertible bond issuance plans on the agenda.
"The increase in the issuance of bank convertible bonds this year is due to many reasons: On the one hand, last year, banks reduced fees and concessions to support the real economy, and credit was released relatively quickly, and corresponding capital consumption increased, and the demand for capital supplements also increased. ; On the other hand, the assessment of domestic systemically important banks is also continuing to advance, and the capital bottom line requirements for important domestic systemic banks have been improved. Compared with other refinancing methods, convertible bonds have low cost and high efficiency. Advantages, with the potential to supplement banks' core Tier 1 capital, and are favored by banks." Wang Yifeng, chief analyst of the financial industry at the Everbright Securities Research Institute, told a reporter from the Securities Daily.
"With the hot issuance of'fixed income +'funds, the market's demand for convertible bond allocation continues to rise, which provides opportunities for the issuance of many large-cap convertible bonds, and promotes a significant increase in the issuance of bank convertible bonds this year." Chief Bond of China Sea Securities Analyst Jin Yi said in an interview with a reporter from Securities Daily.
Different from previous years, most of the convertible bonds issued this year have a maturity of 6 years, and only a few have a maturity of less than 6 years.
According to data from Eastern Fortune Choice, among the 117 convertible bonds issued, only 7 have maturities of 5 years or less, and the rest have maturities of 6 years.
In contrast, in the same period last year, nearly 30% of convertible bonds had a maturity of less than 6 years.
"An important purpose of the issuance of convertible bonds by listed companies is for low-cost financing." Chen Li said that the downward pressure on the economy this year has increased and the demand for corporate financing has increased.
Most of this year's convertible bonds have a six-year maturity, and a longer maturity can ease the company's short-term capital turnover pressure.
And it is more conducive for investors to have more opportunities to convert to shares, which can ease the pressure of issuers to redeem bonds when the convertible bonds mature.
(Securities Daily)