The parties involved in international bond issuance mainly include bond issuers, lead managers, underwriting syndicates, intermediaries, financial agents and payment agents, bond investors, etc. Legal relationships are formed between different parties through contractual documents or legal documents, forming the basic structure of international bond financing.
1) Bond issuer
The issuer of international bonds refers to the issuer of international bonds and the obligation to Foreign government agencies, financial institutions and corporate organizations that are in debt. According to the requirements of most international bond markets, issuers of international bonds should have a high credit rating, which usually refers to a rating of BBB or above assessed by major international bond credit rating agencies.
2) Lead manager
Lead manager is also called "international coordinator" and "lead manager" "Thousand things manager" refers to the person who is responsible for organizing the preparations for bond issuance and organizing the work of the underwriting team in international bond issuance. When the lead manager also serves as the lead underwriter, he is a party to the underwriting agreement and the distribution agreement, and is also the signer of the bond prospectus. The lead manager has the status of the representative of the underwriting syndicate, which is usually served by an international investment bank, securities company or financial institution with a good reputation, and can be composed of two or more institutions (called "joint lead managers"); In projects with a large issuance scale, the lead manager may also organize a manager group composed of several financial institutions (called "joint managers") to work together.
3) Underwriting syndicate
The international bond underwriting syndicate is composed of It consists of financial intermediaries, usually investment banks, securities companies, commercial banks (most countries allow commercial banks to engage in securities underwriting business) and other financial institutions. The members of the underwriting syndicate can be divided into three levels: lead underwriter, deputy lead underwriter and distributor. Their underwriting relationship is determined by the distribution agreement (also known as the "underwriting syndicate agreement"). The lead underwriter can be composed of more than two financial institutions, usually serving as the lead manager or joint manager; the deputy lead underwriter can also be composed of more than two financial institutions; the distributor is usually composed of many financial institutions according to the underwriting scale and underwriting requirements. Institutional composition. Members of the underwriting syndicate are usually responsible for underwriting or underwriting bonds in accordance with the bond underwriting agreement and distribution agreement, and are entitled to charge underwriting fees; among them, the underwriters above the lead underwriter or joint managers usually have the main underwriting responsibilities, generally accounting for the total underwriting responsibility. issue amountAbove 40%, the distributor's underwriting share is relatively small, generally only obtaining a distribution ratio of 0.5% to 2%.
4) Intermediaries
In international bond issuance, a bond rating agency is usually required to Issue bonds for credit rating. This is a necessary condition for issuers entering the international bond market for the first time. The lead manager often requires the bond to be rated before deciding to organize the underwriting of its bond; for issuers who have already entered the international bond market, obtaining A high credit rating can obviously improve the conditions for its bond issuance. Currently, internationally recognized credit rating agencies mainly include **Moodys Investors Services Inc., **Standard and Poor's Corp., Canadian Debt Grade **Corp., **Extel Independent institutions such as Statistics Corporation and Japan Corporate Debt Research Institute that pursue "non-interested purposes" have their bond ratings generally trusted and valued by investors in the bond market. From a practical perspective, issuers of many national bonds often entrust more than two bond rating agencies to rate their bonds. If the rating results of a bond rating agency are not satisfactory to the issuer, the issuer may request it not to publish the rating results; but if the bond issuer accepts the rating results, the bond rating agency will have the right to publish its evaluation results and information to investors. , and have the responsibility to review the bond issuer regularly or at any time before the bonds issued are fully repaid. If the issuer's debt repayment situation changes, the bond rating agency will downgrade or upgrade its bond rating and will notify investors announced.
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