What are the benefits of issuing bonds by enterprises? And since all loans have interest, why not borrow directly from the bank and choose to issue bonds?

(A) to solve the financing bottleneck of enterprises

At present, the financing channels of enterprises are narrow, such as bank loans, short and medium-term bills, bank acceptance bills, issuing trusts, etc. Due to the influence of the national monetary policy, the traditional financing channels can no longer meet the financing needs of enterprises. Issuing corporate bonds is a form of financing supported by the state at present, which broadens the financing channels for enterprises.

(B) enhance corporate image

Since corporate bonds are listed and traded on the exchange, the successful issuance of corporate bonds is a good display of the strength and reputation of enterprises, which greatly enhances the corporate image.

(C) reduce financing costs

In the current market environment of tight bank money and rising loan interest rate, the financing cost of corporate bonds is about 20% lower than that of bank loans, and enterprises with high credit rating can even reduce the financing cost by 30%. At the same time, corporate bonds with the concept of affordable housing are approved faster than bank loans.

(D) Flexible use of financing funds

The current supervision mode of corporate bond financing funds is loose on the actual use of funds, and enterprises can use funds flexibly according to their own development requirements, which has played a good role in promoting the development of enterprises.