Shanghai has named three major underwriters for a multibillion-yuan bond sale this month amid a financing shortfall for infrastructure projects.
Bank of Communications and Bank of Shanghai, both headquartered in Shanghai, and Beijing-based China Development Bank have been appointed to help underwrite the debt sale in less than three weeks, according to three bankers with direct knowledge of the deal.
The State Council, for the first time in 17 years, allowed four local governments to sell bonds directly under a pilot scheme.
Shanghai is leading the move to conduct the bond issuance and subscriptions are expected to begin in the coming week.
The Shanghai Finance Bureau, which is in charge of the bond offering, was not available for comment yesterday.
Beijing picked Shanghai, Guangdong, Zhejiang and Shenzhen late last month to launch direct sales of local government bonds.