China to issue 2004 railway construction bonds
(Xinhua)
Updated: 2004-10-12 15:05

China will issue its 2004 railway construction bonds soon, with three security companies, including CITIC Securities Co., Ltd, as major underwriters, sources from theChinese Ministry of Railways said  Monday.

The ministry signed an agreement with the three underwriters for the bonds Sunday.

The 5 billion yuan (US$600 million) bonds include 3.5 billion yuan in 10-year bond with floating interest rate, and 1.5 billion yuan in 5-year bond with annual interest rate of 3.9 percent.

All Chinese citizens and legal Chinese organizations can buy the five-year bonds to be sold for 20 days at the Beijing branchesof the Industrial and Commercial Bank of China and 10-year bonds to be sold for 10 days at the distribution networks set by the underwriters, the Ministry said.

All the money raised will be used for the construction of railways and the purchase of railway facilities, the Ministry noted.

Since 1995, the Ministry has issued similar bonds eight times, amounting to more than 16 billion yuan.

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