Local Government Bond Issuance Exceeds 770B Yuan for Jan/Feb, on Track to Surpass 1 Trillion in First Quarter

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The latest data from provincial authorities points to the issuance of over 770 billion yuan in local government bonds over the first two months of 2019.

A report from Securities Daily puts local government bond issuance for the month of February at 358.87 billion yuan, following the release of the latest figures from Hubei province, Inner Mongolia and Ningxia.

Local government bond issuance for the months of January and February was 776.84 billion yuan, with the report forecasting first quarter issuance of over 1 trillion yuan.

28 February saw Hubei province issue 12.178 billion yuan in special bonds for series two to six, 6.99472 billion yuan in special bonds for series seven to nine, and 11.93171 billion yuan in special bonds for series 10 to 12.

Inner Mongolia issued 13.6 billion yuan in normal bonds (series two), while Ningxia issued 8.5 billion yuan in normal bonds (series one to two).

On 27 February Gansu province issued 8.889 billion yuan in normal bonds (series 2), and Ningbo municipality issued 1 billion yuan in local government bonds, including 800 million yuan in normal bonds and 200 million yuan in shanty renovation special bonds (series 1).

Analysts say the issuance of local government bonds has commenced in advance this year, while the issuance scope has seen an increase, with funds being used for key infrastructure projects including highways, urban rail, environmental protection and shantytown overhauls.

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