Xi Jinping’s ‘city of the future’ just had a record quarter for construction financing

The five batches raised more than 14 billion yuan (US$1.9 billion), marking the busiest quarter for construction financing in the six years that the bonds have been issued for the development zone, located in Hebei province.

Most of the bonds will take 30 years to mature, with the annual coupon rate ranging from 2.23 to 2.52 per cent, according to Celma.org.cn, a national platform for local government debt information disclosures. A batch of 20-year bonds was also issued, with a yield of 2.47 per cent.

The coupon rates are very close to those of China’s treasury bonds with the same maturity duration.

State media reported last month that more than 760 billion yuan had been invested in the city’s construction, including roads, residential blocks, schools, hospitals and a high-speed railway station connecting the capital city of Beijing and the mega-port city of Tianjin.