China announced Monday that it will issue an eight billion yuan (986 million U.S. dollars) bond to finance the 2010 Shanghai World Expo.

The first batch of the bond, about 1.5 billion yuan (185 million U.S. dollars), will be issued on Wednesday in Beijing, Shanghai and Shenzhen by the Shanghai World Expo Group Co. Ltd.

Zhang Dongsheng, director of the National Development and Reform Commission's finance and banking department, said the World Expo bond will be issued with special approval from the State Council and the National Development and Reform Commission.

It is the first time that China has financed an international pageant via a bond.

Zhang said the term of the first batch of the bond will be seven years with a four percent par interest rate.

The other 6.5 billion yuan bond will be issued in function of progress in building the World Expo Park, the official said.

Zhou Yupeng, deputy mayor of Shanghai, said the World Expo bond not only carves out a new financing channel for the exposition, but also guarantees the exposition's infrastructure construction fund.

The Shanghai World Expo is scheduled to be held from May 1 to October 31 in 2010. More than 200 countries and international organizations and over 70 million visitors are expected to attend the exposition.

Source: Xinhua