MOF to sell 30 bln yuan e-savings bonds

The Ministry of Finance (MOF) plans to sell up to 30 billion yuan (4.8 billion U.S. dollars) worth of electronic savings bonds next week. In a statement on Monday, the MOF said the two batches of bond issuances will be the eleventh and twelfth issues of such bonds this year. According to the ministry, the eleventh batch is worth 21 billion yuan and carries a term of three years with a fixed annual interest rate of 4.76 percent, while the twelfth issue of five-year bonds is worth 9 billion yuan at a fixed annual interest rate of 5.32 percent. The bonds will be issued from September 10-19, with interest to be calculated from September 10 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.