(Yicai) May 13 -- China will issue the first part of this year’s CNY1 trillion (USD138.2 billion) of ultra-long special sovereign bonds, which will be used to bolster the economy, this week.

CNY40 billion (USD5.53 billion) of 30-year bonds will be sold on May 17, a finance ministry note said today. The rest will be issued in 22 tranches until November and their maturities will be 20, 30, and 50 years.

The government work report delivered by Premier Li Qiang in March said China will issue these ultra-long special treasury bonds over many years in order to carry out its core strategies and build security in key areas. 

The announcement of this year’s schedule will ensure smooth sales by helping underwriters arrange bidding as soon as possible and it responds to concerns among investors, so steadying market expectations and boosting confidence, said Wen Laicheng, a professor at Beijing's Central University of Finance and Economics.

The CNY1 trillion of bonds are included in the central government's budget, but not in the fiscal deficit, per the report. Half will be kept by the central government and the rest will be allocated to local authorities, though that may be changed.

The fiscal support adds to borrowing in the fourth quarter of last year, when the government issued an additional CNY1 trillion of special treasury bonds to raise money for disaster prevention and reconstruction. Those funds reached local governments by February, the ministry said earlier.

Editors: Dou Shicong, Emmi Laine