SHANGHAI, July 6 China's Shandong province will
issue a total of 13.7 billion yuan ($2.21 billion) of five-,
seven- and 10-year municipal bonds on July 11.
The proceeds will be used to support public projects such as
rebuilding of shanty housing and construction of new roads, the
Shandong government said in its bond prospectus published late
on Friday on the website for China major bond issues
Shandong province is the second local government to issue
municipal bonds after Guangdong.
The Ministry of Finance said in late May that 10 local
governments had been given quotas to issue a combined 109.2
billion yuan ($17.52 billion) worth of municipal bonds this
Earlier, the finance ministry announced China's watershed
move of allowing the 10 local governments issue and redeem their
own bonds in an experiment to straighten out messy state
budgets, and start the clean-up of its $3 trillion public debt
Governments in Shanghai, Zhejiang, Guangdong, Shenzhen,
Jiangsu, Shandong, Beijing, Qingdao, Ningxia and Jiangxi will be
part of a pilot scheme that effectively creates China's
first-ever municipal bond market.
($1 = 6.2038 yuan)
(Reporting by Chen Yixin and Fayen Wong; Editing by Kim