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(Bloomberg) -- A Chinese local government financing vehicle is selling the first floating rate corporate note seen in the domestic bond market in more than four years, even as interest rates in the country are at historically low levels.

Shanghai Lingang Economic Development (Group) Co. is selling a 1-billion yuan ($140 million) floating rate note with a 20-year tenor. It’s the first floating rate note in China’s credit market since April 2020, according to Bloomberg-compiled data. The issuer is paying a certain credit spread over China’s 5-year sovereign bond yield and the coupon will be reset every five years, according to the prospectus.

“The timing of this floating rate note’s issuance is quite surprising,” said Wang Chen, co-founder of Belt & Road Origin (Beijing) Tech Co., a provider of credit-risk analysis. Wang said issuers usually choose to issue floating rate notes when they think interest rates will drop further, but they are already at record-low levels.

Corporate issuers are enjoying low funding costs in China as the central bank keeps rates low to stimulate the economy. Such inexpensive financing is attracting borrowers, with issuers pricing a record 11 trillion yuan of bonds this year.