If you are a CFO in Canada for a mid-sized company, your company’s credit rating is BBB.
If you are a CFO in Canada for a mid-sized company, your company’s credit rating is BBB. In the capital market, BBB credit rating company is easy to raise capital from bond issuance, and the YTM is 2% higher than the 5 year government bond, 1.8% over 10 year government bond; Your company is now with relatively sufficient fund. Given you expect that next year 2022, after the Pandemic is close to end, economy will be rebounded. Your company is in the real estate business as a developer focusing on Great Vancouver Area. However your shareholders are badly impacted by the Pandemic business slowdown. Your company investing/developing property projects from land acquisition, construction, pre-sale to complete, usually takes 5-7 years time line. In this situation, and considering the bond features, what are your views to issue a corporate bond, ie., would you think to consider issuing bond? If Yes, what kind of factors you are considering and please list and explain? If No, why, please list your arguments. (no more than 300 words, in3-4 bulletin points and explanations)
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