According to the "2021 Hubei Provincial Government General Bonds (Phase V) Information Disclosure Document" recently released by the Hubei Provincial Department of Finance, the basic situation of the bonds is as follows:
Basics
Within the limit of the scale of bond issuance approved by the State Council, the total face value of the general bonds (phase V) of the Hubei Provincial Government in 2021 will not exceed 700 million yuan, of which:
The first tender is planned to be issued with a face value of $200 million
Commercial banks plan to issue over-the-counter issues with a par value of not more than RMB500 million
The variety is a book-entry fixed-rate interest-bearing bond with a maturity of 3 years.
Interest is accrued on November 1, 2021, with interest paid annually, repayment of principal and payment of the last interest on the maturity date of the bond. After the issuance of each bond, it shall circulate in the national interbank bond market and the bond market of the stock exchange in accordance with the regulations.
Description of the investment direction of the raised funds
In accordance with the requirements of the Ministry of Finance, general bond funds are included in the general public budget management. The general bonds issued this time are all used for public welfare infrastructure construction projects such as transportation, and must not be used for recurrent expenditure and project expenditure prohibited by the central government.
Distribution method
(1) In 2021, hubei provincial government general bonds (phase v) will be issued through bidding.
(2) The bonds of the current period are also issued through the counters of commercial banks.
Answers to questions about Hubei provincial government bonds
➤ ➤ What is a government bond?
Government bonds are debt certificates issued by the government to funders in order to raise funds and promise to pay interest and repay the principal within a certain period of time, including national bonds, namely central government bonds, local government bonds and government guaranteed bonds. Government bonds are characterized by high security, strong liquidity, stable income and tax-free treatment.
➤ ➤What is Hubei Provincial Government Bond Counter Business?
Hubei Provincial Government Bond Counter Business refers to the business of individuals and small and medium-sized institutions that subscribe to or buy and sell Hubei Provincial Government bonds through counter business establishments (mainly commercial bank business outlets or online banking channels).
According to the relevant regulations of the Ministry of Finance, bonds publicly issued by the Hubei Provincial Government can be issued within Hubei Province through the commercial bank counter market.
➤ ➤ What is the basic situation of hubei provincial government bonds issued through the commercial bank counter?
(1) Overview of bond information
The Hubei Provincial Government General Bonds (Phase V) are scheduled to be issued over the counter of commercial banks on October 26
Total par value of the offering: not more than 500 million yuan
Variety: 3-year book-entry fixed-rate interest-bearing bonds
Bond Type: General Bond
Bond code: "2171060", the bond is abbreviated as "21 Hubei Bond 126".
The starting amount of investment is 100 yuan, and the minimum increment unit is 100 yuan face value.
(2) Date arrangement and interest rate determination
Hubei Provincial Government Bonds
The release date is October 26
The distribution date is October 27-29
The starting date is November 1
The listing date is November 3
Interest is paid on November 1 of each year (holidays postponed, the same below), and the principal and the last interest is paid on November 1, 2024. The coupon rate will be determined on October 26 through the interbank and exchange market for the 2020-2022 Hubei Provincial Government Bond Public Offering Underwriting Group.
(3) The use of funds and projects
The funds raised from the general bonds in this period are mainly used for public welfare infrastructure construction projects such as transportation, and the source of debt repayment funds is the general public budget income, and the bond repayment security is high.
➤ ➤ What are the banks undertaking the bond counter business of Hubei Provincial Government in this period?
There are 9 banks undertaking the bond counter business of Hubei Provincial Government in this period, namely Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Industrial Bank, Ping An Bank, China Merchants Bank, and Shanghai Pudong Development Bank.
➤ ➤ How can individual and small and medium-sized institutional investors subscribe for and trade Hubei Provincial Government bonds through the commercial bank counter market?
During the distribution period (October 27-29), individual and small and medium-sized institutional investors can subscribe through the counter sales time of the business outlets of the Hubei Provincial Government Bond Counter Business, and can also subscribe for the bonds through the electronic banking channels (including online banking and mobile banking).
After the listing date (from November 3), the counter business adopts the market maker bilateral quotation system, and the start-up bank quotes the investor's bid price and investor sell price on the bond day by day, and the quoted price is usually the center of the previous Japanese-Chinese bond valuation, and the up-down plus-minus spread is formed. Over-the-counter transactions are settled on A+0, and if investors need to liquidate, the funds can be received in real time after selling bonds.
For specific subscription and transaction channels, refer to the bond sales information disclosed by each bank or view the column of China Bond Information Network - Business Operation - Counter Business - Business Outlets.
Want to know how to subscribe at the counter?
Pay attention to the Wuhan local treasure WeChat public account, the background reply [bonds], you can get some bank subscription guides
➤ ➤How can individual and small and medium-sized institutional investors check the balance of their over-the-counter bond accounts?
Through the counter subscription and transaction of commercial banks, there are two ways to review the balance of bonds over the counter: one is to inquire about the balance of the bond account from the opening bank; the other is to dial 400-666-5000 and contact the Central Treasury Bond Registration and Settlement Company to review the balance of the escrow account.
➤ ➤ After buying a bond, how to get the principal and interest of the bond?
The Hubei Provincial Department of Finance will transfer the interest or principal to the designated account of the bond registration custodian and settlement institution on the interest payment date (November 1 of each year, if there is a holiday extension, the same below) or the maturity date (November 1, 2024), and the bond registration custodian settlement institution will immediately transfer the above amount to the start bank after receiving the above money, and the start bank will transfer the redemption funds to the investor's fund account once on the bond coupon payment date or maturity date and in full.
Comprehensive Yangtze River Cloud, Hubei Provincial Department of Finance Wuhan local treasure
Public account production: Yin Yue
Review: Bo Chen
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