Chinese bank issues record $2.82 billion to country's agricultural sector for food security, reduced harvest expected due to abnormal weather

Xinhua
Sat, 10 Jun 2023 12:00 UTC

The Agricultural Bank of China, one of the country's largest commercial lenders, has issued 20 billion yuan (about 2.8 billion U.S. dollars) of special financial bonds to support rural development.

Raised funds will mainly be used to strengthen grain security and the integrated development of primary, secondary and tertiary industries in rural areas.

The bonds were well-received by investors in the interbank bond market, with the subscription ratio reaching 2.1 times, according to the bank.

The bank said it would fully leverage the role of financial services in supporting the country's agricultural development and continue to channel more capital into promoting rural revitalization.

Comment: Reuters provides more details:

Agricultural Bank of China issued 20 billion yuan ($2.82 billion) in agricultural special bonds into the interbank market on Friday, a record amount for such bonds, with an issue rate of 2.65%, the state-owned Securities Times reported.

Concerns over food security have mounted in China where the largest wheat-growing province of Henan, its grain already damaged by wetter-than-normal weather, is expected to receive more rain in the coming days, according to state forecasters, complicating harvest operations.

China, the world's top producer of grain, had been expecting a bumper crop this year.

China is used to floods and droughts but abnormal weather patterns, including excessive rain and relentless heatwaves, are also affecting the country's rice-growing southern provinces, risking devastation to key crops and a squeeze on supplies.

The bonds have been issued to "serve the construction of a strong agricultural country," the Security Times report said. ($1 = 7.0935 Chinese yuan renminbi)

Meanwhile Western governments are threatening to throw farmers out of business in pursuit of a nefarious 'green' agenda:

• Thousands of farmers protest in Brussels over nitrogen limits that will cause 'socio-economic carnage'
• Huge fire at farm kills 50,000 hens, exacerbating New Zealand's egg shortage
• Europe's food prices set to soar up to 50% higher due to energy crisis
• Netherlands gov't plans to restrict farmers to TWO cows per field with proposed draconian green laws at a cost of €6.7 billion