MOF to restart e-savings bonds issue

BEIJING - The Ministry of Finance (MOF) plans to restart selling up to 40 billion yuan ($6.32 billion) worth of electronic savings bonds next week, after previous issuances were suspended last week due to a surprise rate cut by the central bank.

In a statement on its website Saturday, the MOF said the two batches of bond issuances will be the ninth and tenth issues of such bonds this year.

According to the ministry, the ninth batch is worth 28 billion yuan and carries a term of three years with a fixed annual interest rate of 4.76 percent, while the tenth issue of five-year bonds is worth 12 billion yuan at a fixed annual interest rate of 5.32 percent.

The bonds will be issued from July 20-29, with interest to be calculated from July 20 and paid annually, the statement said.

The issuance will be canceled or suspended if interest rate hikes occur during the issue period, the statement noted.

The bonds will be available only to individual investors, it said.

Electronic savings bonds are considered more convenient than other types of bonds, as interest can be paid directly into investors' accounts.