Shanghai Chengtou, Ping An Ink Social Security Housing Bond
Posted on May 15th, 2011 by Rory Rawson | Tags: Bond, Housing Bond, Security Housing, Security Housing Bond
Shanghai Chengtou Holding Co., Ltd. and Ping An Insurance (Group) Company of China Ltd. on May 13 signed an agreement to jointly launch a social security housing bond investment plan to raise not more than CNY 3 billion, which will be used to fund the former’s social security housing project in Shanghai.
This is the country’s first social security housing project with investment from an insurance company. Interest rate on 50% of the bond amount is set at fixed 6.4532% and the rate on the rest will be 5.1% lower than the benchmark interest rate set by the central bank.
The Chinese government vows to further expand the construction of social security housing this year. The total number of new social security housing and houses in run-down areas that will undergo renovation will reach 10 million units this year with total investment estimated to be between CNY 1.3 trillion and CNY 1.4 trillion.
Shanghai municipal government plans to begin the construction of 300,000 units of affordable housing, complete the construction of 300,000 units of housing for the movement of local residents and 100,000 unit of low-rent housing by 2012.
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