City issues 24 billion yuan of bonds, lowers government’s funding costs
The city is the first in the country to complete its full-year quota of debt sales, according to the report.
The state media said the securities were issued with an average tenor of 16.5 years and a 3.55% mean coupon; 3.13% for for five-year bonds, 3.28% for seven years, 3.33% for 10 years, 3.63% for 15 years and 3.92% for 30 years.
The minimum interest rate within the range stipulated by the Ministry of Foreign Affairs has greatly reduced the financing cost for the municipal government, the report said.
Bond bidding multiples were high, and major financial institutions have subscribed, it added without revealing which ones.
More than 50 financial institutions bid a total of 479.2 billion yuan, and the overall subscription multiple reached 20.1 times.
Brokerage financial institutions won bids of 7.33 billion yuan, accounting for 31% of the sales.
It was reported that in order to do a good job in the first batch of government bond issuance this year, the Municipal Finance Bureau actively docked the major bond underwriting agencies.
The city issued a total of 15 government bonds this time, focusing on supporting 39 projects in rail transit, ecological protection, medical and health projects, agricultural development, and smart port construction, among others.