China to float 30b yuan in e-savings bonds

BEIJING - The Ministry of Finance (MOF) announced Monday that it will issue two batches of electronic savings bonds worth up to 30 billion yuan ($4.74 billion).

The two batches will be the fifth and sixth issues of such bonds this year, according to a statement on the ministry's website.

The fifth batch is worth 21 billion yuan and carries a term of three years with a fixed annual interest rate of 5.58 percent, while the sixth issue of five-year bonds is worth 9 billion yuan at a fixed annual interest rate of 6.15 percent, the MOF said.

The bonds will be issued from June 10-23, with the interest to be calculated from June 10 and paid annually, the statement said.

The issuance will be canceled or suspended if any interest rate hike occurs during the issue period, the statement said.

The bonds will be available only to individual investors, it said.

Electronic savings bonds are considered more convenient than other types of bonds, as interest can be paid directly into the investor's account.