During the year, commercial banks issued 58.2 billion yuan of special financial bonds for “agriculture, rural areas and farmers”
According to data from Oriental Fortune Choice, as of November 17, 17 commercial banks had issued special financial bonds for “agriculture, rural areas and farmers” during the year, with a total issuance of 58.2 billion yuan. Last year, only 12 commercial banks issued special financial bonds for “agriculture, rural areas and farmers”, with a total issuance of 36.45 billion yuan. The scale of bond issuance this year far exceeds the level of last year.
The issuance entities of special financial bonds for “agriculture, rural areas and farmers” are mainly small and medium-sized banks such as city commercial banks and rural commercial banks, but there are also large state-owned banks. In addition to the Bank of China, in June this year, the Agricultural Bank of China successfully issued 20 billion yuan of “agriculture, rural areas and farmers” special financial bonds in the inter-bank market, setting a record for the largest issuance of bonds of the same type, with an interest rate of 2.65%. This bond innovatively adopts the theme of “Serving the Construction of an Agricultural Power” and is the first special financial bond for “agriculture, rural areas and farmers” linked to a specific theme in the market. The funds raised will be used in areas such as food security and the integrated development of rural primary, secondary and tertiary industries.
“Rural revitalization is a national strategy. Providing financial services in the field of ‘agriculture, rural areas and farmers’, increasing agriculture-related loans, and meeting reasonable financing needs in this field are important elements for the banking industry to serve the national strategy.” Postal Savings Bank of China researcher Lou Feipeng told ” A reporter from Securities Daily said that the gradual increase in the scale of special financial bonds for “agriculture, rural areas and farmers” is a concrete manifestation of commercial banks’ better service to “agriculture, rural areas and farmers” and the rural revitalization strategy.
Ming Ming, chief economist of CITIC Securities, told a reporter from Securities Daily that the issuance conditions of “agriculture, rural areas and farmers” special financial bonds are moderately relaxed compared to ordinary bonds, which is more conducive to financing. Commercial banks issue special financial bonds for “agriculture, rural areas and farmers” and raise funds to support the construction of eligible rural revitalization projects, which is conducive to extensive mobilization of market financial resources to support rural revitalization, strengthen investment protection for rural revitalization, and strive to promote urban-rural integration and coordinated regional development.
In June 2021, the People’s Bank of China and the former China Banking and Insurance Regulatory Commission jointly issued the “Measures for the Assessment and Evaluation of Financial Institutions in Serving Rural Revitalization”. The “Issuance or Investment Holding of Special Financial Bonds for ‘Three Rural Areas'” serves as an assessment and evaluation indicator system for financial institutions in serving rural revitalization. bonus points in. In Mingming’s view, this has driven the growth in supply and demand of commercial banks’ “agriculture, rural areas and farmers” special financial bonds.
In order to establish and improve a multi-level, wide-coverage, sustainable modern rural financial service system, enhance financial service capabilities, help comprehensively promote rural revitalization, and accelerate the construction of an agricultural power, in June this year, the People’s Bank of China, the State Financial Supervision and Administration Bureau, and the China Securities Regulatory Commission The “Guiding Opinions on Financial Support to Comprehensively Promote Rural Revitalization and Accelerate the Construction of an Agricultural Power” issued by the Council, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs emphasizes that “financial institutions are encouraged to issue ‘agriculture, rural areas’, small and micro, and green financial bonds to broaden the channels for loanable funds. “.
Lou Feipeng said that the implementation of the rural revitalization strategy requires more financial services, and the same is true for the “agriculture, rural areas and farmers” field. It is expected that commercial banks will continue to increase the issuance of special financial bonds for “agriculture, rural areas and farmers” in the future, thereby providing more financial support for the “agriculture, rural areas and farmers” areas.
“In the future, the issuance scale of special financial bonds for ‘agriculture, rural areas and farmers’ by commercial banks will show a growth trend.” Mingming said that at present, the issuance of special financial bonds for “agriculture, rural areas and farmers” is still mainly concentrated in city commercial banks and rural commercial banks. It is expected that the issuance scale of state-owned banks and joint-stock banks will be larger in the future. will be enhanced to provide more configurable high-quality bond assets.
