Caixin
May 09, 2018 07:46 PM
FINANCE

Local Governments Given More Options for Issuing Bonds

Local governments in China can now issue two-year, 15-year, and 20-year ordinary bonds, and 15-year and 20-year special purpose bonds. Photo: VCG
Local governments in China can now issue two-year, 15-year, and 20-year ordinary bonds, and 15-year and 20-year special purpose bonds. Photo: VCG

China has expanded localities’ fundraising options by introducing longer-term local government bonds as regulators continue to tighten their grip on alternative forms of financing.

Local governments can now issue two-year, 15-year, and 20-year ordinary bonds and 15-year and 20-year special purpose bonds, which are repaid through project proceeds, according to a notice from the Ministry of Finance published on Tuesday. Local governments already have many options to issue bonds with maturities of 10 years or less. The ministry also encouraged banks, securities firms, insurers and individuals to invest in local government bonds.

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