Shenzhen has issued its first batch of local government bonds for 2022 worth 24.6 billion yuan (US$3.86 billion) at the Shenzhen Stock Exchange on Tuesday, Shenzhen Economic Daily reported yesterday.
The batch of 15 bonds have maturities ranging from three to 20 years, with an average issuance interest rate of 3.19%, the lowest in China.
The bond funds will mainly be used for government-subsidized housing projects, transportation infrastructure, social undertakings, municipal and industrial park infrastructure, and ecological environmental protection, with a focus on ongoing projects.
The raised funds are intended to help Shenzhen’s economy grow steadily and improve people’s livelihood, advance the construction of the city’s major projects and the resumption key enterprises’ work and production, and play a key role in boosting the development of pillar industries and stabilizing the economy.
According to Dai Jintao, head of the Shenzhen Municipal Finance Bureau, the bureau has made advanced payments of treasury funds and allocated them to some projects to ensure the capital demand for project implementation.
“Next, we will work with all districts, new area and special cooperation zone and government departments to make the most of the bond funds to create favorable conditions for the city’s economy to continue to grow steadily in the second quarter,” Dai said.