China's Ministry of Railways (MOR) has begun to raise 30 billion yuan (4.41 billion U.S. dollars) to support railway construction through floating the first batch of bonds this year on the inter-bank bond market.

The bond issue comprised 20 billion yuan of 10-year bonds and 10 billion yuan of 15-year bonds, with a bidding yield rate range of 4.8 percent to 5 percent, said the MOR Tuesday.

Proceeds would be used to construct 32 new rail lines including a passenger line linking the two northeastern cities of Dalian and Harbin, which will boast a speed of 350 kilometers an hour, said the MOR.

Six securities brokerages, including Citics Securities, will underwrite the bonds sale.

Last year, State planner National Development and Reform Commission gave the green light to the MOR to issue 100 billion yuan of bonds, mainly to facilitate construction of 43 railway construction projects and locomotive purchases.

China plans to extend its rail network to 100,000 km by 2020 from 76,600 km in 2006, at an estimated 2 trillion yuan cost.

(Xinhua News Agency September 22, 2009)