China News Service, September 29. According to the Ministry of Finance website news, recently, the Ministry of Finance and the People’s Bank of China jointly issued the "Notice on Issues Related to the Issuance of the Third and Fourth Treasury Bonds (Electronic) in 2020." The notice stated In order to raise financial funds and support the development of the national economy and social undertakings, the Ministry of Finance decided to issue the third tranche of savings treasury bonds (electronic) in 2020 (abbreviation of national debt: 20 savings 03, national debt code: 201703, hereinafter referred to as the third period) and 2020 The fourth tranche of national savings bonds (electronic) in 2015 (abbreviation of national debt: 20 savings 04, national debt code: 201704, hereinafter referred to as the fourth tranche).
The notice pointed out that the two treasury bonds are both fixed-rate and fixed-term varieties, with a maximum issuance of 60 billion yuan.
The term of the third phase is 3 years, the annual coupon rate is 3.8%, and the maximum issuance amount is 30 billion yuan; the term of the fourth phase is 5 years, the annual coupon rate is 3.97%, and the maximum issuance amount is 30 billion yuan.
The issuance period of the two treasury bonds is from October 10, 2020 to October 19, with interest starting from October 10, 2020. Interest is paid annually, and interest is paid on October 10 each year.
The third and fourth installments will repay the principal and pay the last interest on October 10, 2023 and October 10, 2025, respectively.
The notice mentioned that the issuance of the two treasury bonds will be cancelled if the People's Bank of China adjusts the benchmark interest rate for deposits of three-year financial institutions from the date of the announcement of the two treasury bonds to the day before the issuance start date.
During the issuance period, if the People's Bank of China adjusts the benchmark interest rate for deposits of 3-year financial institutions, the issuance of the two-phase treasury bonds will cease from the date of interest rate adjustment, and the unsold issuance quota will be cancelled by the Ministry of Finance.
The two treasury bonds were sold by 40 members of the 2018-2020 savings treasury bond underwriting syndicate (hereinafter referred to as the members of the underwriting syndicate) through outlet counters.
In order to coordinate the prevention and control of the normalized new crown pneumonia epidemic and the issuance of savings treasury bonds, members of the underwriting syndicate must strictly abide by the epidemic prevention and control requirements of the territorial and regulatory authorities.
30 underwriting syndicate members including the Industrial and Commercial Bank of China (hereinafter collectively referred to as online banking members, see the attachment for the detailed list) also use its online banking agency.
On October 10, the upper limit for online banking members to sell the two treasury bonds through online banking is 40% of the initial basic commission quota for the current treasury bonds; from October 11 to October 19, online banking members reasonably allocate within the commission quota obtained by them The ratio of outlet counter to online banking quota.
After the business closes on October 13, 2020, the unsold basic consignment quota of each underwriting syndicate member will be reduced to zero after checking with China Government Securities Depository Trust & Clearing Co., Ltd. (hereinafter referred to as CCDC).
The reduced basic agency sales quota will be included in the mobile agency sales quota, which will be available to members of the underwriting syndicate from October 14, 2020.
In addition, the two treasury bonds cannot be redeemed in advance during the issuance period and can be redeemed in advance after the issuance period.
The early redemption business can only be handled through the counters of the business outlets of the underwriting syndicate members.
When investors redeem two treasury bonds in advance, members of the underwriting syndicate will calculate and pay interest to investors based on the actual number of days from the last interest payment date (inclusive) to the early redemption date (excluding) and the following execution rates, namely: from 2020 Calculated starting on October 10th of the year. If you hold two treasury bonds for less than 6 months, you can redeem in advance without interest. If you hold two treasury bonds for less than 6 months, you will receive interest at the coupon rate and deduct 180 days of interest. Monthly interest is calculated at the coupon rate and 90 days of interest is deducted; the fourth period expires 36 months but less than 60 months is calculated at the coupon rate and 60 days of interest is deducted.
Underwriting syndicate members handle early redemption for investors, and may charge investors a handling fee at 1‰ of the early redemption principal.