What does bond bridge financing mean?

Question 1: What does bridge loan mean? What does bridge loan mean? Bridge loan, also known as bridge loan, refers to financial institution A's inability to operate due to temporary lack of funds after receiving the loan project, so it consulted financial institution B and asked it to help distribute funds. After the funds of financial institution A are in place, B quits. For B, this loan is the so-called bridge loan. In China, policy banks such as CDB/ Exim Bank/Agricultural Development Bank play the role of financial institution A, while commercial banks play the role of financial institution B. ..

Generally speaking, bridge loan is a short-term loan, which belongs to a transitional loan. Bridge loan is an effective tool for directly capitalizing buying opportunities, and the biggest advantage of bridge loan is its quick recovery. Bridge loan has a short term, no more than one year, and the interest rate is relatively high, with some mortgages such as real estate or inventory as collateral.

The funds provided by bridge loan to pave the way for M&A transactions can be understood as temporary or short-term loans provided by banks and other financial institutions to borrowers. It can be in the form of fixed loan or revolving letter of credit, but the term is short. Therefore, it can only be a short-term financing, which plays a "bridge" role in M&A transactions. The interest rate of "bridge loan" is 2%~5% higher than that of ordinary loans. When the market situation changes abnormally, it is necessary to speed up the transaction, and the high cost of buying the market forces the buyer to obtain funds quickly to end the transaction, so they adopt the "bridge loan" one after another. Subsequently, the bank loan is repaid by selling bonds and stock bills.

Both companies and individuals can use bridge loan. Bridge loan's personalized design can be applied to many different situations. For example, a company is carrying out a round of equity financing, which is expected to end in six months. The company can use bridge loan to meet its working capital needs, and will repay bridge loan by issuing bonds in the future. Bridge loan in enterprise financing is called "gap financing", which is used to make up the time gap between repaying the issued bonds and replacing the bonds with newly issued bonds. At this time, bridge loan is also a kind of operating loan, which is used during the quiet period and IPO period, or during the signing of the letter of intent for acquisition and the implementation of the acquisition.

Question 2: What is the meaning of bridge loan? The funds provided by bridge loan to pave the way for M&A transactions can be understood as temporary or short-term loans provided by banks and other financial institutions to borrowers. It can be in the form of fixed loan or revolving letter of credit, but the term is short. Therefore, it can only be a short-term financing, which plays a "bridge" role in M&A transactions. The interest rate of "bridge loan" is 2%~5% higher than that of ordinary loans. When the market situation changes abnormally, it is necessary to speed up the transaction, and the acquisition cost of the market is higher, forcing the buyer to obtain funds quickly to end the transaction, thus adopting "bridge loan" one after another. Subsequently, the bank loan is repaid by selling bonds and stock bills.

Question 3: What is Qiaodu? What is the relationship between bridge funds and bridge loan? Bridges are all bridges. There is basically no difference between the two, mainly to solve the problem of real estate funds, but it is still difficult to explain here. You can go to China Private Equity Network to see the case.

Question 4: What is bridge loan? Here is a chestnut for you. Ms. Wang is an enterprise manager. Two years ago, she mortgaged her house in Haidian District to China Construction Bank with a loan of 2 million yuan. So far, she has paid back 1.2 million yuan, and still owes the bank 800,000 yuan. However, due to the high housing prices in the past two years, Ms. Wang's original house worth 3 million has now risen to 4.5 million, so Ms. Wang wants to use this house to borrow more money to invest.

However, the loan that has not been paid off has made Ms. Wang very embarrassed. I heard that Chengye.com can provide bridge loan, so Ms. Wang came to consult. After learning about Ms. Wang's specific situation, our senior consultant showed that she had lent Ms. Wang 800,000 bridge funds to repay the loan, and then helped Ms. Wang to borrow 2.8 million from China Merchants Bank. In less than a month, Ms. Wang borrowed another 2 million from the bank.

Question 5: What happened to the guarantee company bridge loan? The name is already bad; Non-financing guarantee companies can do business such as fund bridge crossing, property preservation guarantee, project guarantee, contract performance guarantee, credit warehousing guarantee and export guarantee agency business.

Borrowing companies borrow money from banks. When the loan expires, the borrowing company needs to repay the loan and borrow the new and return the old. Borrowing companies often need to borrow new ones only when they can't afford the old ones. In order to solve this problem, the borrowing company sometimes looks for a temporary loan from the guarantee company, and then returns it to the guarantee company after the bank lends money. This is the so-called bridge loan.

Process: customer application-approval by guarantee company-signing contract-issuing loan to settle bank loan-issuing new loan by bank-recovering loan by guarantee company.

Question 6: What are bridge funds, financial leasing and deleveraging? They are mainly the financial support (capital) of major shareholders, and the sale of leased assets (factoring) and the issuance of bonds to banks through bank credit and loans.

Let the lessee pay the deposit, find a guarantee company to guarantee, and insurance companies.

Question 7: What does bridge financing mean?

Bridge financing

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Dictionary results:

Bridge financing

Transitional financing;

The above results come from Kingsoft.

Example:

1.

Pfizer has obtained about $22.5 billion in bridging financing from five banks.

Pfizer applied for temporary loans of about $22.5 billion from five banks for this transaction.

Question 8: What is the difference between medium-term notes and bonds? Short-term financing bills should be called commercial bills. In the United States, the term of commercial paper is generally between 1-270 days. Commercial paper is a discount tool, and its liquidity is relatively low, because commercial paper is generally customized according to the specific needs of investors.

Corporate bonds generally have a long term, and most companies use bonds of 20-30 years to finance.

Medium-term notes are a financing method between commercial notes and corporate bonds, with a term ranging from 9 months to 30 years. Compared with corporate bonds, the sales of medium-term notes often lack continuity or periodicity. Corporate bonds are generally sold when the market interest rate is relatively low, and the financing cost of enterprises is low. When the market interest rate is relatively high, enterprises generally issue commercial paper medium-term notes for financing.

Due to the different issuance time and characteristics of the three bonds, rating agencies give different ratings. There is also a gap in liquidity, and the derivatives they create are different. The purpose of issuance is different, and each has its own advantages and disadvantages. Commercial paper is a short-term unsecured promissory note, a zero coupon bond and a discount tool. Can be used for bridge financing. Medium-term notes are more flexible, with more derivatives and more embedded options, mainly to fill the gap between commercial notes and corporate bonds. Corporate bonds are debts that have the responsibility to pay interest regularly and repay the principal at maturity. They are interest-bearing bonds that raise long-term funds when the capital market is favorable. Three kinds of bonds can be collectively referred to as corporate debt instruments.

Question 9: The key factor of bridge loan's factor cost in bridge loan is to have a qualified buyer and sign a contract. Generally speaking, lenders who issue mortgage loans for new houses will provide transitional financing as personal notes payable when the property is sold and settled. However, if there is no buyer for the property you own and you want to sell it, most lenders will set a lien on the property, thus making bridge loan a secondary mortgage. It should be noted that lenders and borrowers in bridge loan should pay attention to the interest cost of loans, upfront costs, and the consequences that it takes longer than expected to sell real estate. Although bridge loan is short-term financing, the interest rate is high, and the cost from the front end is also high (usually higher than the loan interest rate with a term of only a few weeks or months). In fact, any secured loan is acceptable to the lender who can get the advance payment. Therefore, if an individual holds stocks, bonds or insurance policies, it is best to apply for bridge loan with them as collateral.

Question 10: What does "repurchase" mean when reposting bills? Buy-back plus buyout occurs in the discount business of basic acceptance bills between financial institutions. The ticket collector signs a repurchase agreement with the ticket seller for his own business needs, and then signs a buyout agreement on the day when the repurchase expires.

An acceptance bill refers to a bill that has been accepted. That is, in the transaction, the seller issues a bill of exchange in order to ask the buyer to pay, and the payer accepts it on the face and signs it to acknowledge the payment due. The drawee becomes the acceptor of the bill after acceptance. Commercial acceptance bills are accepted by the buyer, and bank acceptance bills are called bank acceptance bills.