There are many types of creditor's rights to choose from in investment bonds. According to different issuers, bonds can be divided into government bonds, financial bonds, corporate bonds and international bonds. According to the repayment period, bonds can also be classified in many ways, such as short-term bonds, medium-term bonds, long-term bonds and perpetual bonds. So what is the special bond of local debt? Let's get to know each other.

What is a special bond for local debt?

Local debt special bond is also a kind of government bond, which refers to the government bond issued by the provincial government for public welfare projects with certain income, and it is agreed to repay the principal and interest with government funds or special income generated by public welfare projects within a certain period of time. The maturity of bonds is 5 years, 7 years, 10 years, 15 years, 20 years, 30 years, etc. After the funds are released and lent to cities and counties, the expenditures will be arranged through the budget adjustment of government funds at the corresponding level, and will be used for special purposes according to the declared released projects.

The funds raised by the special bonds of government local bonds are earmarked for special purposes. The funds are mainly used for transportation infrastructure, energy, agriculture, forestry, water conservancy, ecological environment protection, health, education, infrastructure of urban and rural cold chain logistics, infrastructure of municipal and industrial parks, major national strategic projects, renovation of old urban communities, shantytown renovation, land reserve, etc.

Under normal circumstances, the principal and interest of special local bonds are repaid by the income generated by the project itself, and the project unit bears the main repayment responsibility. The main difference between special bonds and general bonds is that special bonds mainly invest in projects with certain income, while general bonds invest in projects without income.