China to issue 30 billion yuan T-bonds in August-September

Chinese Ministry of Finance announced Thursday that it would issue certificate treasury bonds (the fourth batch in 2005) with a total face value of 30 billion yuan (3.62 billion US dollars) from August 1 to September 30.

The bonds will comprise 21 billion yuan (2.56 billion US dollars) with a three-year maturity and a nominal interest rate of 3.24 percent, and 9 billion yuan (1.08 billion US dollars) with a five-year maturity and a nominal interest rate of 3.6 percent, the ministry said.

The ministry will float 15 billion yuan (1.31 billion US dollars) from August 1 to August 31 and the remaining 15 billion yuan from September 1 to September 30.

Interests for the new bonds will start from the day of purchase and be paid together with the principal upon maturity, without compound interests, it said.

The ministry said the bonds are registered to permit loss reporting. They may be mortgaged to apply for loans but may not be renamed nor transferred. The real name system should be applied for individual purchases of the bonds.

Cashing in advance is permitted at the original banking outlets where the bonds were purchased, but one per thousand commissions (based on the amount of principal) will be charged, it said.

The actual interests will be relevant to the actual holding time, the ministry said.

The bonds will be available at the banking outlets of the 37 members of the 2004 certificate T-bond underwriting consortium including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, and some joint-stock commercial banks and city commercial banks.

Source: Xinhua