The Agricultural Development Bank of China(ADBC) will issue its first three-year floating rate bonds to raise ten billion yuan on Aug. 10.
The bonds will take the Shanghai Interbank Offered Rate (Shibor) as the benchmark interest rate, with the interest paid every three months.
The Shibor as the benchmark rate would help avoid predicative risks of bond interest rates, traders said.
The issuance is also another step to promote the use of Shibor, which was launched at the start of this year to develop a more market-sensitive benchmark for the interbank market instead of the central bank's one-year deposit and lending rates.
China's central bank has been promoting the Shibor-based benchmark interest rate system.
The ADBC is the fourth bank to issue the floating rate bonds in the domestic interbank market. China Development Bank has issued a five-year bond and a one-year bond in June, while the Export-Import Bank of China issued a two-year bond in July.
Source: Xinhua
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