China to Issue 28 Bln Local Govt Bonds in Early April

飞雪寒冰

The Ministry of Finance said it will issue a combined 28.4 billion yuan worth of three-year bonds on behalf of six local governments in the first half of April.



Sichuan Province will undertake the largest issue of 9 billion yuan in bonds, with Chongqing Municipality also issuing 5.8 billion yuan. The northern city of Tianjin will issue bonds worth 2.6 billion yuan, Henan province 5 billion yuan and Liaoning and Shandong 3 billion yuan each.



Early last month, Beijing authorized local governments to issue a combined quota of bonds worth 200 billion yuan via the finance ministry to fund infrastructure projects, part of a spending package intended to boost the economy that will bring the 2009 fiscal deficit to 950 billion yuan.



The ministry has said inland regions will receive preference in bond quotas due to their greater need for fresh capital.

It also announced that the remainder of the scheduled local government bond issues will come in the second and third quarters of 2009.



The March 27 issue of 3 billion yuan worth of three-year bonds by the Xinjiang region in northwest China was the first ever by a local government. The yield was set at 1.61 percent, to be paid annually.   



Central China’s Anhui province also issued 4 billion yuan of bonds on March 31.

sysop

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