China issues 24b yuan in bonds for local govts

BEIJING -- The Ministry of Finance announced Monday that it will issue 23.9 billion yuan ($3.78 billion) in bonds for local governments in a bid to ease their financing pressures.

The ministry will issue the bonds on behalf of seven provincial-level governments, including those of Beijing, Shanxi, Heilongjiang, Jiangsu, Fujian, Ningxia and Qinghai.

The bonds will have a maturity of three years and will be issued from July 10 to 12, as well as carry a fixed interest rate of 2.75 percent, a statement on the ministry's website said.

The interest will be paid annually on July 10. The principal and the interest will be paid in full on July 10, 2015, the statement said.

Local governments other than those of the cities of Shanghai and Shenzhen and the provinces of Zhejiang and Guangdong are prohibited from issuing bonds directly.