Public issuance of corporate bonds shall meet the following conditions:
（1） Having a sound and well functioning organization;
（2） The average distributable profits of the last three years are sufficient to pay the interest of the corporate bonds for one year;
（3） Other conditions stipulated by the State Council.
The funds raised through public issuance of corporate bonds must be used in accordance with the purposes of funds listed in the corporate bond raising measures; Any change in the use of funds shall be subject to a resolution of the bondholders' meeting. The funds raised by public issuance of corporate bonds shall not be used to cover losses and non productive expenditures.
When issuing convertible corporate bonds, a listed company shall, in addition to meeting the conditions specified in the first paragraph, comply with the provisions of the second paragraph of Article 12 of this Law. However, in accordance with the corporate bond offering method, except that the listed company conducts corporate bond conversion by purchasing its own shares.
[Legal Basis]
Article 15 of the Securities Law states that public issuance of corporate bonds shall meet the following conditions:
（1） Having a sound and well functioning organization;
（2） The average distributable profits of the last three years are sufficient to pay the interest of the corporate bonds for one year;
（3） Other conditions stipulated by the State Council.
The funds raised through public issuance of corporate bonds must be used in accordance with the purposes of funds listed in the corporate bond raising measures; Any change in the use of funds shall be subject to a resolution of the bondholders' meeting. The funds raised by public issuance of corporate bonds shall not be used to cover losses and non productive expenditures.
When issuing convertible corporate bonds, a listed company shall, in addition to meeting the conditions specified in the first paragraph, comply with the provisions of the second paragraph of Article 12 of this Law. However, in accordance with the corporate bond offering method, except that the listed company conducts corporate bond conversion by purchasing its own shares.
