One of China’s big three policy banks has staged a bond issue to raise funds for flood-stricken Henan province.
The Export-Import Bank of China (Exim Bank) issued 3 billion yuan (approx. USD$464.7 million) in “flood relief and trade stabilisation financial bonds” on 28 July. The instruments have a term of one year and a reference rate of 1.9941%, and were 6.95 times oversubscribed.
Exim Bank said that the bond issue was a “major move” and a “rapid response” measure for flood prevention and alleviation efforts in Henan province, and would be used to ensure the resumption of production in region, as well as the ability of disaster-affected enterprises to purchase raw materials.
The next step for the policy lender will be to “further employ its own function and effectively and adequately use specialist bond funds to continue to contribute financial strength to flood relief and post-disaster reconstruction in Henan.”