Beijing Municipal Government Repays Bond 17 Years Ahead of Maturity to Save Interests

Beijing municipal government is testing a program to repay its special-purpose bonds early to save interest costs.

The city government said it has saved more than 70% of interest costs by early repayment of special-purpose bonds in 2023, according to a draft budget.

In August, Beijing repaid 39 million yuan ($5.5 million) of principal of an 8.4-billion-yuan ($1.18 billion) 20-year special-purpose bond originally due in February 2040, nearly 17 years before its maturity date, according to the finance bureau.