Data:2009-12-12 2:34
Category: Money tips Release Date: 2005-12-15
Refers to corporate bonds with warrants attached to corporate bonds, warrants, the holder shall be entitled in accordance with law within a certain period according to the agreed price (exercise price) to subscribe for stock rights is the bond plus warrants product portfolio.
From overseas markets, the relevant practice, corporate bonds with warrants can be divided into "separation" and "non-separation-type", and "cash-Import-type" and "offset the type."
Among them, "separation-type" refers to stock options and corporate bonds can be separately from the circulation freely traded on the market; "non-separation-type" refers to stock options and corporate bonds can not be separated from the same period of existence between the two, while circulation of the transfer, since the issuance to the transaction are combined, shall not be transferred separately. Non-separation-type corporate bonds with warrants is similar to convertible bonds.
"Cash Import-type" means a holder of the exercise of subscription rights, must go out cash to subscribe for shares; "offset the type" refers to a nominal amount of corporate bonds may be a certain percentage of their direct share transfer, such as the current convertible debt way. The "separate type", "non-separation-type" and "cash-import-type", "offset the type" be combined, we can get a different type of product.
Corporate bonds with warrants can be used two kinds of pricing: First, warrants and corporate bonds were priced; second is priced combination of the two, namely, issuance of corporate debt accompanied by warrants. The former bonds, higher interest rates, which rates bonds and convertible bonds are quite. If the warrants can be separated and bond trading, the bond interest rates can even be lower. The convertible bond issuance cost is usually lower than ordinary bonds.