China to launch 35b yuan special T-bonds
Updated: 2007-09-22 11:15
The Ministry of Finance announced on Friday that it will launch a new tranche of special treasury bonds valued at 35.09 billion yuan (US$4.68 billion) from September 24.
While the first tranche bonds had a maturity term of 15 years, the new bond would have 10 years and an annual yield of 4.46 percent, said a ministry statement.
The statement said the second tranche would be issued from September 24 to26, and tradable from September 28 through the national inter-bank bond market and stock markets.
Interest would be paid every half-year.
Private investors can trade the bonds through the pilot commercial banks - branches of the Industrial and Commercial Bank of China, the Agricultural Bank of China, Bank of China and China Construction Bank.
The ministry announced on September 10 that it would issue 200 billion yuan in special treasury bonds as part of plan to raise 1.55 trillion yuan to fund the country's new foreign exchange investment firm.
The special treasury bonds will be issued in two groups, with the first 100 billion yuan to be issued this month in three phases, while the sale of the remaining 100 billion yuan is scheduled for the fourth quarter.
In June, China's legislature approved the issuance of 1.55 trillion yuan of special treasury bonds by the Ministry of Finance to buy US$200 billion of the foreign exchange reserve for a State investment firm to 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.
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