The Chinese Ministry of Finance said it will issue 750 billion yuan (101.5 U.S. billion dollars) in 15-year special treasury bonds on Tuesday.
The new issue will have an annual interest rate of 4.45 percent paid half-yearly and become tradable also on Tuesday, the ministry said in a statement. The People's Bank of China, or the central bank, will buy the bonds via the Agricultural Bank of China.
"As with previous offerings, this batch will have little affect on the market," said Gao Zhanjun, a Citic Securities analyst.
The sale is part of a planned 1.55 trillion yuan basket the ministry will issue to purchase 200 billion U.S. dollars of foreign exchange from the central bank for the funding of the China Investment Corporation. The state-owned foreign exchange investment firm launched in September to better use the country's huge foreign exchange reserves that has triggered disputes between China and its major trading partners.
By the time the bonds are sold, the total amount of special treasury bonds issued would add up to 1.52 trillion yuan, approaching the projected quota.
According to the ministry's plan, the remainder would be issued before the end of this month.
Source:Xinhua
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