Chinanews.com, August 4th. According to the website of the Ministry of Finance, the Ministry of Finance and the Central Bank recently issued a notice stating that in order to raise financial funds and support the development of the national economy and social undertakings, the Ministry of Finance has decided to issue the seventh 2021 treasury bonds (electronically ) (National debt abbreviation: 21 savings 07, national debt code: 211707, hereinafter referred to as the seventh installment) and the eighth 2021 savings treasury bond (electronic) (national debt abbreviation: 21 savings 08, national debt code: 211708, hereinafter referred to as the eighth period ).
According to the notice, the two treasury bonds are of fixed interest rate and fixed maturity varieties, with a maximum total issuance of 40 billion yuan.
The seventh period has a period of 3 years with a nominal annual interest rate of 3.4% and a maximum issuance of 20 billion yuan; the eighth period has a period of 5 years, with a nominal annual interest rate of 3.57% and a maximum issuance of 20 billion yuan.
The issuance period of the two treasury bonds is from August 10 to August 19, 2021, with interest starting from August 10, 2021. Interest is paid annually, and interest is paid on August 10 each year.
The seventh and eighth installments will repay the principal and pay the last interest on August 10, 2024 and August 10, 2026, respectively.
The issuance of the two tranches of 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 announcement date of the issuance 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 notice mentioned that the two treasury bonds will be sold by 40 2021-2023 savings treasury bond underwriting syndicate members (hereinafter referred to as the members of the underwriting syndicate, see the attachment for the detailed list) through the counters of the outlets.
In order to coordinate the prevention and control of the normalized new crown pneumonia epidemic and the issuance of savings treasury bonds, the members of the underwriting syndicate must strictly abide by the epidemic prevention and control requirements of the territorial and regulatory authorities.
The management of the two treasury bond issuance quotas is temporarily implemented in accordance with the "2018-2020 Savings Treasury Bond Issuance Quota Management Measures", the initial basic consignment quota is 70% of the maximum issuance of each period, and the basic consignment quota ratio of each underwriting syndicate member is calculated to two decimal places (See attachments).
29 underwriting syndicate members including Industrial and Commercial Bank of China (hereinafter collectively referred to as online banking members, and the detailed list is shown in the attachment) also use its online banking agency.
Industrial and Commercial Bank of China, Postal Savings Bank of China, China Merchants Bank and Bank of Jiangsu (hereinafter collectively referred to as mobile banking pilot members) also use their mobile banking agency for sales.
On August 10, the upper limit for online banking members to sell two tranches of treasury bonds through online banking was 40% of the initial basic commission limit for the current period of treasury bonds, and the total limit for mobile banking pilot members to sell the two tranches of treasury bonds through online banking and mobile banking was the sum of the upper limit for the current period. 40% of the initial basic consignment quota for national bonds; from August 11 to August 19, online banking members and mobile banking pilot members will reasonably allocate the quotas of each channel within the consignment quota obtained by them.
After the business closes on August 13, 2021, the unsold basic consignment quota of each underwriting syndicate member is checked and consistent with China Central Government Securities Depository and Clearing Co., Ltd. (hereinafter referred to as China Securities Clearing Company) and all reduced to zero.
The reduced basic consignment quota will be included in the mobile consignment quota, which will be available to members of the underwriting syndicate from August 14, 2021.
The notice pointed out that the two treasury bonds cannot be redeemed in advance during the issuance period, and can be redeemed in advance after the issuance period ends.
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 interest rates, namely: from 2021 Calculated starting on August 10, 2016. 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, interest will be calculated at the coupon rate and 180 days of interest will be deducted. For 24 months, less than 36 The monthly interest is calculated at the coupon rate and 90 days of interest is deducted; the interest is calculated at the coupon rate and 60 days of interest is deducted when the eighth period expires for 36 months but less than 60 months.
Underwriting syndicate members handle early redemption for investors, and may charge investors a handling fee at 1‰ of the principal redeemed in advance.