The National Development and Reform Commission (NDRC) has released a guideline for Chinese companies issuing special bonds in six types of social fields, including the sport industry.
According to the guideline, companies can use the sports industry special bonds to raise funds for programs of sports bases and venues, sports and leisure facilities
and developing sports products. It can also be used to support the construction of infrastructure in the fields of ice sports, football, water sports, air sports, outdoor sports and sports parks.
Companies are allowed to issue such special bonds with flexible terms, options, payment modes of principal and interest, which is mainly paid by the revenue of their sports programs in the future.
Before this guideline, special bonds were primarily issued by State-owned Enterprises in the field of infrastructure. In 2016, the NDRC approved such special bonds with a total volume of more than US $119 billion. However, the special bonds in the sports industry will improve the participation of private companies and social capital.
The sports industry in China has a great prospect for development but still needs favorable policies from the government and financial aid from society to grow up. With the difficulties of finding financing in China currently, the special bonds offer companies another way of financing, which can promote the development of the sports industry, state-owned Xinhua citing an expert reports.
Proofread by William Logsdon