China's Guangdong province to sell 5.5bn yuan of muni bonds on July 13

SHANGHAI: China's Guangdong province will sell 5.5 billion yuan ($886 million) of special purpose municipal bonds on July 13, according to a notice on the website of a major bond clearing house on Monday.

The issue includes 2.75 billion yuan of five-year tenor, 1.1 billion yuan of seven-year tenor and 1.65 billion yuan of 10-year bonds, the statement said.

The current quota for new fundraising in China's fledgling municipal bond market stands at 600 billion yuan in 2015.

The Ministry of Finance announced earlier that local governments would be allowed to swap up to 2 trillion yuan of high-interest, maturing debt for official lower interest provincial or municipal debt.