ADBC sells RMB20 bln 5-Y bond at 3.40 pct yield

The 20 billion yuan of 5-year fixed-rate bonds offered by the Agricultural Development Bank of China (ADBC) earlier on Monday were finally sold at a 3.4 percent yield, well in accordance with the 3.45 to 3.42 percent estimated by the market.

The ADBC announcement shows that overall 20.24 billion yuan of funds participated in the initial 15 billion yuan planned offering, pushing final sales up to 20 billion yuan with a 1.35 times of bid-to-cover ratio, lower than the 1.70 times for its 3-year fixed-rate bond sold at September's outset.

Given the limited trading value for its yield, the bidding result was no surprise, said a local bond trader.

This was the fourteenth batch of ADBC financial bonds to be sold this year. The payment date and date of circulation are on October 12 and 16.

ADBC, a non-profit policy bank, previously publicized that its bond issuance quota for 2009 was 350 billion yuan, including 320 billion yuan of mid and long term bonds and 30 billion yuan of short term bills.

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