Learn mandarin - China to launch nearly 32 billion yuan T-bonds

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BIZCHINA / Top Biz News

China to launch nearly 32 billion yuan T-bonds

(Xinhua)
Updated: 2007-09-18 08:58

The first batch of 31.97 billion yuan (US$4.25 billion)?of the total 200
billion yuan?in special treasury bonds targeting the general public will
be launched on Tuesday, China's Ministry of Finance said.

The ministry announced last Monday that it will issue 200 billion yuan in
special treasury bonds as the second part of a planned 1.55-trillion-yuan
fund to finance the country's new foreign exchange investment firm.

The first batch of the bonds, with a term of 15 years and an annual yield
of 4.68 percent, will be launched between September 18 and September 21,
and tradable from September 27 via the national inter-bank bond market
and stock markets, said the ministry in a statement on Monday.

The ministry said interest will be paid every half-year and the bonds
will finally be repaid on September 18, 2022.

The ministry said that private investors can trade the bonds at the
secondary market through the trial commercial banks - branches of the
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank
of China and China Construction Bank.

According to the ministry, the special treasury bonds will be issued in
two groups, with the first 100 billion yuan to be issued this month in
three batches, while the sale of the remaining 100 billion yuan is
scheduled for the fourth quarter.

Two more batches will be issued on September 21 and September 28.

In June, China's top legislature approved the issuance of 1.55 trillion
yuan of special treasury bonds by the Ministry of Finance to buy US$200
billion foreign exchange reserve for a state investment firm to make
better use of the country's huge foreign exchange reserves.

At the end of August, the ministry issued 600 billion yuan of special
treasury bonds targeting the country's commercial banks with an annual
interest rate of 4.3 percent.

(For more biz stories, please visit Industry Updates)

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