What is a city investment bond?
City investment bond is a kind of corporate bond. The purpose of issuing urban investment bonds is different from other bonds, and it is issued to invest in some infrastructure of the city. Urban investment bonds are generally issued by local investment and financing platforms, and are generally issued by publicly issuing corporate bonds or medium-term notes, so urban investment bonds can also be called "quasi-municipal bonds".
The difference between urban investment bonds and local bonds
The difference between urban investment bonds and local bonds is that urban investment bonds are mainly issued for investment purposes such as urban infrastructure, while local bonds are generally used for the construction of local public facilities such as transportation, communication, housing, education, hospitals and sewage treatment systems. Below I will make a detailed analysis of the difference between urban investment bonds and local bonds.
Urban investment bonds: Generally speaking, compared with industrial bonds, they are mainly issued for investment purposes such as urban infrastructure. Urban investment bonds, also known as "quasi-municipal bonds", are local investment and financing platforms for publicly issuing corporate bonds and medium-term notes, and their main businesses are mostly local infrastructure construction or public welfare projects.
Local debt: also known as local government bonds, refers to bonds issued by local governments and local public institutions in a country with fiscal revenue. Local government bonds are generally used for the construction of local public facilities such as transportation, communication, housing, education, hospitals and sewage treatment systems. Local government bonds are generally based on the tax capacity of local governments as a guarantee for repayment of principal and interest. There are two modes of local bond issuance. The first mode is that local governments issue bonds directly. The second is that the central government issues treasury bonds and then lends them to local governments, that is, the central government issues treasury bonds for local use. Under certain circumstances, local government bonds are also called "municipal bonds".