Sichuan abend kleider to issue RMB 18 bln in local government bonds

Mar. 26, 2009 (China Knowledge) - China's Ministry of Finance (MOF) has given its approval for southwestern China's Sichuan Province to issue RMB 18 billion in local government bonds, which will account for 9% of the total planned local government bonds, according to a report issued by the Sichuan provincial government on Wednesday.

The three-year bonds, to be issued by the MOF on behalf of Sichuan Province, will have an annual interest rate of about 2.7%.

The money collected through the bond issuance will be spent on government-subsidized housing, rural civil projects, rural infrastructure, health care, education and culture, ecological improvement projects, and post-quake reconstruction.

Xinjiang Uygur Autonomous Region and Anhui Province have secured approved to issue RMB 3 billion and RMB 4 billion in bonds, respectively, according to an earlier report from China Knowledge. Sichuan's approved issuance is much larger because of the high cost of repairing earthquake damage.