Public placement and private placement are two methods of bond issuance. Public placement bonds refer to the issuance of bonds to an unspecified majority of investors, while private placement bonds refer to the issuance of bonds to a small number of specific investors.

The main differences between the two:

1. Publicly offered bonds are mainly sold directly to investors in the securities market. Investors can be financial institutions, individuals or others. Investors; Private placement bonds are bonds issued directly by the bond issuer to a small number of investors, and the minority investors are institutional investors.

2. Since the final investors of public bonds and private bonds are different, public investors target an unspecified majority of investors, and their bond issuance volume can be huge; private investors target a specific few institutional investors. Therefore, the amount of bond issuance must depend on the financial strength of institutional investors. Generally speaking, the amount of bond issuance is subject to greater restrictions.

3. In order to protect the interests of investors, the issuance of public debt must obtain the corresponding rating from a bond rating agency before it can be listed. Private debt subscription targets are a small number of financial institutions with securities analysis capabilities, and they do not need to With the help of rating agencies to review the grade of the bond issuer, we are fully capable of deciding whether to subscribe or not by relying on the strength of the institution.

4. Publicly offered bonds are listed bonds, while privately offered bonds are generally not listed.

5. Publicly offered bonds have a wider social impact and are easily familiar to the majority of investors in the bond market. Privately offered bonds have a narrower impact, with only a few investment institutions subscribing to bonds.

6. Public placements generally need to be reported to the China Securities Regulatory Commission for approval; private placements generally need to be reported to the Asset Management Association for registration and filing.

Warm reminder:

1. The above content is for reference only and does not make any suggestions;

2. Before investing, it is recommended that you first understand the existence of the project To avoid risks, you should have a clear understanding of the project’s investors, investment institutions, on-chain activity and other information, rather than investing blindly or entering the fund by mistake. Investment involves risks, so be cautious when entering the market.

Response time: 2021-11-29. For the latest business changes, please refer to the official website of Ping An Bank.