100 million yuan of funds is not a great amount in later China. In a metropolis, a real estate speculator would have to spend 100 million or 200 million yuan to buy a house for a unit. But in the early 1980s, this was not a small amount. In 1982, the total expenditure of the state's fiscal fiscal spending on scientific research was only 6.5 billion yuan, and this money would need to be allocated to thousands of scientific research institutions and numerous projects. It is already very envious to have hundreds of thousands of funds for a project.

Scientific research is a money-burning thing. If you don’t have money, if you want to produce first-class scientific research results, unless countless time travelers cheat with their golden fingers. Feng Xiaochen can remember some fragmented knowledge, but this knowledge is not enough to support the entire large fertilizer project. If you want to break through the obstacles to the localization of large fertilizer equipment, you need someone to invest money, and the amount is calculated in tens of millions.

The RMB back then could be said to be very valuable or very valuable. It is said that it is not a hard currency internationally. When introducing technology and purchasing equipment from abroad, it must be exchanged for foreign exchange. China is a country with extremely shortage of foreign exchange. It is said that it is valuable because the domestic price level in China is very low, especially the salary level of employees is extremely low. 200 yuan is exchanged for US dollars. In the United States, it can only hire an ordinary technician to work for a day, but in China, it can hire a professor for a whole month.

When developing related technologies for large fertilizer equipment, the investment of large foreign companies is calculated in a few billion US dollars, but Feng Xiaochen is confident that he can use tens of millions of RMB to do this. The reason is that the cost of personnel in China is extremely low, while in foreign countries, the expenditure of personnel expenses in scientific research accounts for the majority.

Although he was confident, Feng Xiaochen also knew that he could not apply for this fund from the national finance, and Luo Xiangfei did not have such ability. From a national perspective, at least 100 projects that are more important than large fertilizers can be calculated. If each project requires tens of millions of investment, the amount of money from the national finance cannot be dealt with. There is only one way to complete the research on large fertilizer equipment, that is, raise funds.

"Self-raising funds?"

Luo Xiangfei frowned his eyebrows into a lump. He looked at Feng Xiaochen who came to report his thoughts to him and said in a disbelief: "Xiao Feng, you are not blinded by your past achievements, right? How do you want to raise your own funds with 50 million yuan?"

"It's not 50 million." Feng Xiaochen corrected seriously, "I discussed with Director Wu that 50 million is a relatively conservative number. If we want to ensure that this problem is foolproof, we should have 100 million yuan as a guarantee."

"Tell me first, how do you plan to get 50 million. As for the 100 million thing, let's talk about it later." Luo Xiangfei said.

"I want to issue bonds." Feng Xiaochen put forward the plan he had been planning for a long time.

"Bond?" Luo Xiangfei simply suspected that he had heard it wrong.

Feng Xiaochen nodded seriously and said, "That's right, it's a bond, just like the treasury bills issued by the state."

Luo Xiangfei glared at Feng Xiaochen with annoyance and said, "Of course I know what bonds are. I mean, why can you issue bonds? In addition, what name do you plan to issue bonds?"

Feng Xiaochen said: "Of course I am not qualified to issue bonds, but can we reinstall them? As for the name, it is naturally to raise funds to realize the localization of large fertilizer equipment. We can call it a large fertilizer bond. The bond can be set at a relatively high interest. After the domesticization work is completed in the future, the principal and interest will be repaid through the profits in the manufacturing of complete equipment."

"You are taking care of me again!" Luo Xiangfei scolded, and then said, "Let's not talk about who will issue it. I just want to ask you, why can you convince the people to buy this... Well, just call it Big Fertilizer Bonds, why do you believe that we can have enough profits to repay the principal and interest of these bonds in a few years?"

Feng Xiaochen said: "Let me answer your last question first. This time, we have signed an agreement with several Japanese companies under the Japan Chemical Equipment Association to introduce five sets of large fertilizer equipment. In addition to these five sets of equipment, our country will definitely build other large fertilizer projects in the future. If we can use domestic technology at that time, we can save a lot of foreign exchange, and the cost of domestic equipment will definitely be much lower than that of imported equipment. We can apply for a special policy from the difference in equipment to repay the principal and interest of large fertilizer bonds."

"If calculated based on 5% interest per year, the principal and interest of a 10-year bond is 150 million yuan. Do you think the profit of our newly built large fertilizer project can be so large?" Luo Xiangfei asked.

"It's only more or less." Feng Xiaochen responded with a smile. Luo Xiangfei did not take into account the inflation factor. If this factor is included, it would be no problem to repay 150 million yuan in 10 years. Feng Xiaochen knew that it would be useless to tell Luo Xiangfei this at this time, and Luo Xiangfei didn't have the string of inflation in his mind.

"I think you are still too optimistic." Luo Xiangfei said, "Even if we build 5 more sets of equipment, according to your calculations, each set of equipment will have to make 30 million yuan in principal and interest of bonds. The cost of a set of equipment is less than 200 million yuan. If it is a domestic equipment, at best, it will be just over 100 million yuan. If you add 30 million yuan in principal and interest, the user unit may not accept it."

Feng Xiaochen said: "Actually, what I think is not limited to domestic new projects. If we have the large fertilizer technology with independent property rights, we can take on foreign projects. Southeast Asia, India, Palestine and other countries are all agricultural countries. Like us, they urgently need to build new fertilizer plants. If we can get orders abroad, then the principal and interest of 150 million yuan will not be repaid?"

Luo Xiangfei's eyes lit up: "This is also an idea. When we are making major equipment, the central government's instructions to us are to first realize import replacement and then seek complete sets of equipment exported. If we can really form independent large fertilizer technology and export it to agricultural countries in Southeast Asia, it is not impossible. The profit of exporting equipment is much higher than domestic sales. In this way, the principal and interest of 150 million yuan may not be considered a big deal."

"So, do you agree with my idea?" Feng Xiaochen asked with a smile.

Luo Xiangfei shook his head and said, "The idea is indeed desirable, but I still think it is too feasible. The state issuance of treasury bonds is guaranteed to be repaid by the state. At present, the issuance situation in various places is not ideal. Many places have to use the method of levying to issue them. We can't make an levying bond again, right? The finance will not support us in doing this."

At the beginning of the founding of New China, the state issued some bonds, which were first called "People's Victory Converted Public Bonds", and later issued "National Economic Construction Public Bonds" to raise construction funds. After 1958, the state suspended the issuance of public bonds, and it was not until 1981 that the government bonds were restored and called treasury bonds.

In those days, on the one hand, people lacked the awareness of securities investment, and on the other hand, the people did not have much spare money, so the issuance of treasury bonds was not smooth, and employees of various units often needed to be forced to purchase them through levy. After the 1990s, treasury bonds really became popular. Before each issuance, countless investors lined up overnight to rush to buy them.

Feng Xiaochen's understanding of bonds is based on his experience in later generations and he thinks that using bonds to raise funds is a natural thing. As an official from the planned economy era, Luo Xiangfei felt that issuing bonds is very unreliable. He could not imagine that someone would be willing to spend money to buy such investment products that can only be cashed out in ten years.

Hearing Luo Xiangfei's words, Feng Xiaochen smiled slightly and said, "Director Luo, your concerns make sense. Last year, we were allocated a portion of the treasury bills, and everyone bought 20 yuan. I remember that many comrades complained at that time."

Luo Xiangfei said: "Yes, the treasury bonds can be distributed. Even if everyone complains a little, it is still acceptable for the sake of supporting national construction. But if you create a large fertilizer bond out of thin air. If you pay it for everyone again, won't you penetrate the backbone of our reinstallation?"

"What if we don't make an entrusting at all?" Feng Xiaochen asked with a mysterious smile.

"Who is willing to buy it if you don't have an levy?" Luo Xiangfei asked.

Feng Xiaochen said: "Of course I bought it with rich people."

"Who is the rich?" Luo Xiangfei asked again.

Feng Xiaochen replied concisely: "Foreigners."

"Foreigner?" Luo Xiangfei was stunned, "You mean... are you planning to issue these bonds abroad?"

"That's right." Feng Xiaochen said, "I have considered this issue. The people in our country have low incomes and everyone has no money. It is very unlikely to let them voluntarily pay for large fertilizer bonds. Although we can also use some big principles to convince some people, this is too much pressure for us. The situation abroad is completely different.

First of all, foreign securities investment traditions, foreign residents accept bonds much higher than domestic ones. Secondly, foreigners are richer than us. RMB 100 million is a large number for Chinese people, but for investors in Western countries, it is nothing. Third, the West is currently in an economic crisis and the stock market is sluggish, while China is carrying out large-scale economic construction with good prospects. It can be said that our bonds are definitely high-quality bonds in the international bond market. Not to mention issuing RMB 100 million, it is not difficult to issue RMB 100 million."

"Your matter is a bit big..." Luo Xiangfei said astonished, "It involves international market matters, and it is also issuing bonds abroad. We really have no precedent."
Chapter completed!