Sep. 10, 2012 (China Knowledge) - China's Ministry of Railways
today has announced plans to auction RMB 20 billion worth of fixed-rate bonds on the interbank market tomorrow.
The ministry said that it will issue RMB 10 billion in seven-year bonds, whose coupon rate will be Shibor plus basic spread that will be set between -0.74% and 0.26%.
Meanwhile, the MOR
will float RMB 10 billion in 20-year bonds, whose coupon rate will be Shibor plus basic spread that will be set between -0.13% and 0.87%.
The bonds have been rated AAA.
Proceeds from the deal will be used to fund the construction of 32 projects.
The ministry has issued four tranches of bonds worth a total of RMB 85 billion since the beginning of this year.