For most companies, the anti-epidemic bonds are a way to deleverage their debt, as they have to pay lesser interest on them as compared to that being levied on their existing loans.
Private companies in China are being allowed by the government to issue 'anti-coronavirus bonds', according to a report by ThePrint.
The companies that float these bonds can only do if they give 10 percent of the funds raised via these bonds towards the fight against the outbreak of the virus.
In addition, the government has reduced the time needed for the approval of such bonds to merely a few days, the report noted, adding that most of these bonds are being bought by state run banks and companies to pay off their existing debt, while the companies that are issuing these bonds are using the proceeds from the sales to deleverage their debt.
The report noted that these companies have to pay lesser interest on them as compared to that being levied on their existing loans.
China's economy has taken a hit in the past few months due to the outbreak of the COVID-19, which has claimed over 2,000 lives in the South Asian country.
Key production units have been shut down, with several countries having placed strict travel restrictions to and from the China which is the centre of the epidemic.
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