China Development Bank (CDB), the largest of China's three policy banks, issued US$1 billion in global bonds in New York Tuesday, with Goldman Sachs and other top investment banks as major underwriters.

The bonds include US$600 million in 10-year bond with interest rate of 4.75 percent, and 325 million euros in 5.5-year bond with interest rate of 3.875 percent.

This is the first time for the CDB to raise funds on international capital market since 2000, and the money would be used to support China's infrastructure facilities and industries, as well as pillar industries, the bank said.

CDB governor Chen Yuan said at Tuesday's signing ceremony that the bank would continue to leverage its strong credit standing and market expertise.

The success of this issue clearly shows the strong confidence by international investors in the CDB and China as a whole, Chen said, adding that he believed this would serve as a good benchmark for other Chinese entities.

(Xinhua News Agency September 29, 2004)