China began on Tuesday to issue 30 billion yuan (US$3.75 billion) worth of book-entry treasury bonds with terms of maturity of three months.

 

The T-bonds, the seventh batch of its kind issued this year, carry an annual par interest rate of 1.66 percent, the Ministry of Finance said in a statement posted on its website.

 

The issue of the T-bonds, whose interest will be calculated from June 6, will be completed by June 9, said the ministry.

 

The ministry said the T-bonds are available to investors with accounts for investment in fund, share and bonds investment at China Securities Depository and Clearing Co. or China Treasury Bonds Depository and Clearing Co.

 

The bonds will also be floated for cash trading from June 13 at the national inter-bank bonds markets or the stock markets.

 

The ministry said that 24 of the 61 members of those selected through public bidding as underwriting institutions were awarded the rights on Monday to distribute the T-bonds.

 

Major underwriters for the issue of the T-bonds include the China Construction Bank, the Agricultural Bank of China and the Industrial Bank Co. Ltd.

 

(Xinhua News Agency June 6, 2006)