Chinese bank to issue country's first domestic forex bond

Home>>Business

Last updated at: (Beijing Time) Tuesday, September 16, 2003

Chinese bank to issue country's first domestic forex bond

The China Development Bank is to issue financial bonds totaling 500 million US dollars through the interbank market on Friday, announced a spokesman for the bank Tuesday.

DISCUSSION

CHINESE

SEND TO FRIEND

The China Development Bank is to issue financial bonds totaling 500 million US dollars through the interbank market on Friday, announced a spokesman for the bank Tuesday.

This will be the first domestic foreign exchange bond issued by a Chinese financial institution, opening a new channel for state-owned enterprises to collect foreign currencies on the domestic market, said industrial insiders.

The bank will use the money to support state-owned enterprises in debt restructuring, lowering financing costs and handling the existing high-cost foreign debts, the spokesman said.

Buyers of the bond, bearing fixed interest rates with a term of five years, are restricted to Chinese-funded financial institutions approved to handle foreign exchange business in the country's interbank markets.

The China Development Bank, one of the country's three policy banks, collects money for key projects in the fields of infrastructure facilities, basic industries, pillar industries and high and new technological sectors. It is also a body for bond issuing, second only to the Ministry of Finance.

The issued a total of 1.2 billion US dollars of bonds in the international market in 1996, 1997 and 1999, which were widely received.

Questions?Comments? Click here

China Sets to Put Brakes on Auto Industry ( 2 Messages)

Chinese Scientist Appeals for Checking Academic Corruption ( 2 Messages)

Think about the 2nd Anniversary of '9.11': Viewpoint ( 8 Messages)

High-tech Expo: Precious Chances for Investments ( 2 Messages)

Chinese Top Economists Denounce RMB Appreciation ( 2 Messages)