China Development Bank issued its 1-year, 3-year, 5-year, 7-year and 10-year fixed-rate bonds amid solid demand Tuesday.
The five products were 4.04-, 2.65-, 2.34-, 3.72- and 2.23 times subscribed at auction and were priced to yield 3.1900 percent, 3.6351 percent, 3.7476 percent, 4.1871 percent and 3.8400 percent respectively.
However, most of their coupon rates stood higher than those of comparable products on the secondary market, at 3.3208 percent, 3.6355 percent, 3.7299 percent, 4.1181 percent and 3.7902 percent currently.
Analysts attribute the high coupon rates to financial institutions' insufficient demands amid the present new bond offering boom.
In future, a group of traders believe there is still some space for local cash bond yields to decline alongside the gradual debut of economic indicators this week.
According to China Development Bank, proceeds from these issues will be used to support shanty town reconstruction and urban infrastructure projects.
China Development Bank is an ex-policy lender in China and its bonds issued before the end of this year can enjoy zero risk weighting until maturity.
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