China will issue up to 15 billion yuan (US$1.87 billion) worth of electronically registered treasury bonds, the first of its kind in the country, during July 1 to 15, the Ministry of Finance said on Monday.

 

With a term of maturity of three years and an annual par interest rate of 3.14 percent, the T-bonds will be available only to Chinese citizens, and each holder of an account for T-bond trading can buy up to one million yuan worth of the bonds, the Ministry of Finance said in a statement.

 

The T-bonds, whose interest will be calculated from July 1 of this year and paid annually on that date until 2009, will not be floated on the capital market, said the ministry.

 

The ministry said the T-bonds will be available at designated underwriting institutions.

 

The underwriters include the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, the Bank of Communications, the China Merchants Bank and the Bank of Beijing.

 

(Xinhua News Agency June 27, 2006)