China State Firm Sells Bonds to Help Fund LGFV in Rare Move

00:00

00:00/00:00

Listen to this article 1x

The unusual move is a sign Guizhou province is stepping up efforts to address the financing pressures brought on by maturing LGFV debt

(Bloomberg) — A state-owned firm in China’s Guizhou province is selling bonds to help repay debt issued by a local government financing vehicle (LGFV), a rare move that highlights the region’s liquidity strains.

Guizhou Hongyingda Construction Project Management Co., a wholly owned subsidiary of the finance bureau of Xixiu district in Anshun city, issued a 1.8 billion yuan ($250 million) five-year non-public bond Friday with a coupon of 4.8%, according to a filing on Shanghai Stock Exchange’s private disclosure platform seen by Bloomberg.