Bloomberg News

China Railway Ministry to Sell 15 Billion Yuan of Bonds March 7

March 01, 2012

China’s Ministry of Railways plans to sell 15 billion yuan ($2.4 billion) of five-year notes on March 7 in its second bond sale this year.

Agricultural Bank of China Ltd. (601288) and Bank of China Ltd. are underwriting the securities, the ministry said in a statement on the website of Chinabond, the nation’s official bond clearinghouse. The ministry sold 15 billion yuan of five-year notes last month, at a coupon of 4.6 percent, according to data compiled by Bloomberg.

China’s rail network is set to reach 120,000 kilometers (74,600 miles) under a 2.8 trillion yuan, five-year investment plan ending 2015 that left the ministry with 2.23 trillion yuan of debt as of the end of September. China said in October that the the bonds have “government support” and halved the tax collected on interest income on new issuance from the ministry.

State support helped rail bonds recover losses to become the best-performing corporate notes this year, with a 3.06 percent gain, according to Bank of America Merrill Lynch’s China Corporate Index. The ministry has about 74 billion yuan of bonds maturing this year, according to data compiled by Bloomberg.

To contact Bloomberg News staff for this story: Henry Sanderson in Beijing at

To contact the editor responsible for this story: Shelley Smith at

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