China Development Bank issues 11B yuan of poverty relief bonds

China Development Bank, one of the country's major policy banks, issued special bonds worth 11 billion yuan (about US$1.56 billion) Tuesday, raising funds for poverty alleviation.

A villager is seen in a field in Huamao village of Zunyi, southwest China's Guizhou province, April 14, 2020. [Photo/Xinhua]

The bank will mainly use the funds to grant poverty relief loans, supporting major and rural infrastructure construction as well as industrial poverty alleviation in deeply impoverished areas.

With a one-year maturity and a fixed interest rate at 1.11 percent, the bonds were issued through multiple market channels. Some 9.2 billion yuan of bonds were issued through the interbank bond market, while bonds worth 1.8 billion yuan were available to be purchased by investors through commercial banks.

Aiming at providing poverty-stricken areas with no less than 200 billion yuan of poverty relief loans this year, the bank had granted 82.7 billion yuan of poverty alleviation loans by the end of March.

The bank will further explore innovative modes of special bond issuance to offer financial support for the economic and social development of poor areas.