International bond issuance conditions

1. Issuance conditions

1. Issuance amount. The amount of issuance, in addition to being limited by the credit rating, is also determined based on the issuer's funding needs and the possibility of market sales.

2. Repayment period. The length of the Bond's repayment period is determined by the needs of the issuer, the conditions of the bond market and the type of bond issued. It is generally as short as 5 years and as long as 10 or more than 20 years.

3. Coupon interest rate. Generally, fixed interest rates are used, and floating interest rates are also used. Different types of bonds are issued, and interest rates vary. For bond issuers, the lower the interest rate, the better. Changes in bank deposit interest rates and capital market conditions have a greater impact on bond interest rates.

4. Issue price. The issuance price of a bond is expressed as a percentage of the bond's selling price and par amount. Issuance at 100% of the par price is called equal-price issuance; issuance at a price lower than the par price is called low-price issuance; issuance at a price exceeding the par price is called over-price issuance.

5. Repayment method. The main repayment methods of international bonds are: regular repayment, arbitrary repayment, and repurchase repayment.

6. Subscriber rate of return. It refers to the sum of the profit margin and coupon rate of the difference between the repayment price and the issuance price.

7. Cost. The costs of issuing bonds include bond printing fees, advertising fees, attorney fees, acquisition fees, registration agent fees, entrustment fees, payment agent fees, etc. The issuer's final issuance cost rate calculation formula is as follows: cost rate = yield + (issuance amount - amount of funds received based on issuance price + expenses)/term/amount of funds received based on issuance price - expenses