China to issue 40 bln in e-savings bonds next week

Two rounds of electronic savings bonds worth up to 40 billion yuan ($6.56 billion) will be issued by China's Ministry of Finance (MOF) next week.

They will be the third and fourth issuance of such bonds this year, according to a ministry statement on Wednesday.

The third issuance is worth 24 billion yuan and carries a term of three years with a fixed annual interest rate of 5 percent. The fourth issuance of five-year bonds is worth 16 billion yuan at a fixed annual interest rate of 5.41 percent, the MOF said.

The bonds will be issued from June 10 to 19. Interest will be calculated from June 10 and paid annually, the statement said.

The bonds will be available to individual investors at the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, Bank of Beijing, Bank of Shanghai and China Guangfa Bank, it said.

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