Bonds Mar 06

Bank of Ningbo raises 7bn yuan for micro-loans

The funds will be used for small and micro enterprise loans 

Bank of Ningbo raises 7 billion yuan
Sunlake Park in Ningbo has reopened after being closed for about three weeks. Photo: Ningbo Tourism Agency

(ATF)  – The Bank of Ningbo says it received approval from the central bank and local banking regulator to issue financial bonds of up to 20 billion yuan (about $US2.9 billion) in the national interbank bond market.

The bonds will be used for small and micro business loans, it said on March 5.

Caijing reports that the bonds were booked on March 4 and the actual issue size was RMB 7 billion. 

Some 5.5 billion yuan was in three-year fixed-rate bonds, with a coupon rate of 2.92%, while the remaining 1.5 billion yuan was in five-year fixed-rate bonds, with a coupon rate of 3.10%.

The funds raised will be transferred to the company's account and used for small and micro enterprise loans in accordance with legal requirements to provide financial services to small and micro enterprises.