What is the difference between bond resale and bond repurchase?

Bond resale refers to the issuer's commitment to recover the convertible bonds held by the holder at a certain premium (higher than the face value) when the stock price is lower than the conversion price for several days or the shares of unlisted companies fail to be issued and listed within the prescribed time limit.

Bond repurchase refers to a transaction in which both parties to a bond transaction agree in a contract that the "seller" (buyer) of the bond will buy back the bond at the agreed price (principal and interest calculated at the agreed repurchase rate) at a certain date in the future.

2. Different beneficiaries

Bond resale means that investors have the right to sell their securities back to the issuer when certain conditions are triggered, which is a choice for investors to asset-backed securities. The design of the bond repurchase clause is mainly to give the original obligee the right to terminate the special plan in advance, mainly to protect the original obligee.

3. Different conditions

This clause of bond resale usually appears in long-term products, such as ABS products with real estate, property charging rights and other basic assets as the target, which are often designed. Bond repurchase means that when the outstanding principal of asset-backed securities is below a certain threshold, the original holder terminates the special plan ahead of schedule by exercising the option of clearance repurchase.

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