Source: Ministry of Finance website, Economic Daily WeChat
On the 13th, the Ministry of Finance announced the relevant arrangements for the issuance of general treasury bonds and ultra-long-term special treasury bonds in 2024. According to the arrangement, the maturity of ultra-long-term special treasury bonds includes 20 years, 30 years, and 50 years, and the interest payment method is to pay interest on a semi-annual basis, and it was issued for the first time today (May 17). What are ultra-long-term special government bonds? What role does it play? What is the issuance arrangement? Can an individual buy it? Where to buy? Let's take a look↓
Q
What are ultra-long-term special government bonds?
A: Ultra-long-term special treasury bonds, which contain three key words: ultra-long-term, special, and treasury bonds.
Ultra-long-term, refers to the term. In the bond market, interest rate bonds with a maturity of more than 10 years are generally considered to be "ultra-long-term bonds". Compared with ordinary government bonds, ultra-long-term bonds can alleviate the pressure of debt repayment in the short and medium term, exchanging time for space.
In particular, it is talking about the use of funds. It is a treasury bond issued for a specific target with a clear purpose, and the funds need to be earmarked. According to this year's "Government Work Report", the ultra-long-term special treasury bonds mentioned this time are to systematically solve the problem of funding for the construction of some major projects in the process of building a strong country and national rejuvenation, and are specially used for the implementation of major national strategies and security capacity building in key areas.
Treasury bonds, a kind of government bonds issued by the state in order to raise financial funds, have the highest creditworthiness and are recognized as the safest investment tools, so they are also very popular with the people.
Q
What is the role of ultra-long-term special government bonds?
A: The arrangement of ultra-long-term special treasury bonds was considered by the CPC Central Committee in light of the overall situation of economic and social development. The investment of ultra-long-term special treasury bonds in major projects is conducive to expanding aggregate demand, improving the efficiency of economic operation, optimizing the supply structure, and forming a large number of high-quality assets.
Specifically, in terms of support areas, the ultra-long-term special treasury bonds will focus on key tasks such as accelerating the realization of high-level scientific and technological self-reliance and self-reliance, promoting the integrated development of urban and rural areas, promoting coordinated regional development, improving the security of food and energy resources, promoting high-quality population development, and comprehensively promoting the construction of a beautiful China.
Q
What is the scale of the issuance of ultra-long-term special treasury bonds?
A: This year's "Government Work Report" mentioned that starting from this year, it is planned to issue ultra-long-term special treasury bonds for several consecutive years, which will be used for the implementation of major national strategies and security capacity building in key areas, and 1 trillion yuan will be issued this year.
Q
What is the distribution arrangement for this round?
A: According to the arrangement, this round of ultra-long-term special treasury bonds will be divided into 20-year, 30-year and 50-year maturity varieties, all of which will pay interest on a semi-annual basis. Among them, the 30-year ultra-long-term special treasury bonds "landed the earliest" and will be issued on May 17; The 20-year ultra-long-term special government bond was first issued on May 24, and the 50-year ultra-long-term special government bond was first issued on June 14.
On May 17, the ultra-long-term special treasury bonds to be issued are 30-year fixed-rate interest-bearing bonds, with a total face value of 40 billion yuan through competitive bidding, and the bidding work shall be carried out in accordance with the "Rules for the Bidding and Issuance of Book-entry Treasury Bonds". Interest will be accrued from May 20, 2024, and interest will be paid semi-annually, with interest payments on May 20 (postponed on holidays) and November 20 of each year, and the principal will be repaid and the last interest will be paid on May 20, 2054.
Q
Can individuals buy it? Where to buy?
A: Ultra-long-term special treasury bonds are book-entry treasury bonds, which can be purchased by individuals and institutions, and can be purchased over the counter of banks, online platforms, and securities markets, and can also be circulated and transferred.
Today (May 17), the Ministry of Finance will issue 40 billion yuan of 30-year special treasury bonds
I see the original text of the notice↓
Notice on matters related to the issuance of ultra-long-term special treasury bonds (phase I) in 2024
Finance Office Library [2024] No. 95
Members of the book-entry treasury bond underwriting syndicate, China Central Depository and Clearing Co., Ltd., China Securities Depository and Clearing Co., Ltd., China Foreign Exchange Trade System, Shanghai Stock Exchange, Shenzhen Stock Exchange:
The Ministry of Finance intends to issue 2024 ultra-long-term special treasury bonds (phase I) (30-year). The relevant matters of this issuance are hereby notified as follows:
1. Elements of bonds
(1) Variety. The current treasury bond is a 30-year fixed-rate interest-bearing bond.
(2) The number of issuances. The total face value of the competitive bidding of the current treasury bonds is 40 billion yuan, and no additional bidding will be carried out by Class A members.
(3) Coupon rate. The coupon rate of the current treasury bonds is determined through competitive bidding.
(4) The date of payment of principal and interest. Interest on the current treasury bonds will be calculated from May 20, 2024, and interest will be paid semi-annually, and the interest payment date will be May 20 and November 20 of each year, and the principal will be repaid and the last interest will be paid on May 20, 2054.
2. Competitive bidding arrangements
(1) Competitive bidding time. May 17, 2024, 10:35 a.m. to 11:35 a.m.
(2) Competitive bidding. The competitive bidding for this issuance adopts a single-price bidding method, and the subject matter is the interest rate.
(3) Issuance system. Tender issuance is carried out through the government bond issuance system of the Ministry of Finance.
(4) Marking limitations. The difference in the bidding bids of each syndicate member is 45 bids. The bidding range is 10% above and below the arithmetic average of the 30-year treasury bond yield curve announced by the Ministry of Finance in the Chinese treasury bond yield curve (including the first and fifth working days) before the bidding date (rounded to 0.01%).
3. Payment of issuance funds and issuance fees
The members of the winning underwriting syndicate shall pay the issuance money into the account designated by the Ministry of Finance before May 20, 2024 (including May 20). The date of payment shall be based on the date of receipt of the payment in the account designated by the Ministry of Finance.
Beneficiary Name: Ministry of Finance of the People's Republic of China
Bank: National Treasury of China
Account number: 270-247701-1
Inbound bank number: 011100099992
The handling fee for the issuance of treasury bonds in this issue is 0.06% of the face value of the underwriting syndicate members.
4. Distribution and listing date
The tender for the current treasury bonds will be distributed until May 20, 2024, and will be listed for trading on May 22.
5. Miscellaneous
The format of the emergency bid for this issuance and the emergency application for debt custody is shown in Annexes 1 and 2.
In addition to the above provisions, the bidding for the current treasury bonds shall be carried out in accordance with the Rules for the Bidding and Issuance of Book-entry Treasury Bonds.
Attachment: 1. Emergency bidding for the issuance of ultra-long-term special treasury bonds in 2024
2. 2024 Emergency Application for Custody of Ultra-long-term Special Treasury Bond Creditor's Rights
General Office of the Ministry of Finance
May 13, 2024