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China to sell $6.41b of local govt bonds on June 18

By Hao Yan (chinadaily.com.cn)
Updated: 2010-06-12 12:02

The Ministry of Finance plans to sell 43.8 billion yuan ($6.41 billion) of bonds on behalf of local governments on June 18, the first batch of the 200 billion yuan ($29.29 billion) slated for sale this year, China Securities Journal reported Saturday.

Nine regions are listed in the plan. Hunan provincial government will offer the largest share, 8.9 billion yuan, including three-year notes totalling 6.3 billion yuan and five-year debts worth 2.6 billion yuan. Jiangxi's 6.5 billion-yuan-bond is the second-largest amount, with 4.5 billion yuan of three-year bonds and 2 billion yuan of five-year notes.

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The plans for the other regions are: 6 billion yuan for the Xinjiang Uygur autonomous region, 5.5 billion yuan for the Guangxi Zhuang autonomous region, 5.5 billion yuan for Gansu province, 4.9 billion yuan for Chongqing municipality, 3.3 billion yuan for Qinghai province, 2.6 billion yuan for Hubei province and 600 million yuan for Xiamen city in Fujian province.

This is the second year of China's plan to sell 200 billion yuan ($29.29 billion) of bonds to help local governments fund infrastructure projects, Premier Wen Jiabao told the annual meeting of the National People's Congress in March.

The sales plan, scheduled to be completed by June 30, comprises of 139.2 billion yuan of three-year notes and 60.8 billion yuan of debt due in five years, according to media reports.