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China Development Bank, the nation's biggest bond seller after the finance ministry, plans to sell about 8.1 billion yuan (US$1.1 billion) of asset-backed securities, according to sales documents obtained by Bloomberg News.
The bonds, backed by 91 loans from 64 debtors in industries including power generation, air transport and education, will be sold in 2007, the government-owned bank said in a sales document. The securities will be traded in China's interbank bond market.
China's banking regulator is urging commercial and policy banks to develop a wider selection of financial products for investors. Asset-backed securities, which may surge to 200 billion yuan in China next year, can also help banks broaden sources of income.
The Beijing-based bank sold one of China's first asset-backed bonds in December 2005, after being approved along with China Construction Bank to lead the pilot program.