February 2019 Treasury Bond Issuance Plan
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 7,800 billion won in February 2019 through competitive bidding.
1) KTBs of 7,800 billion won will be issued through competitive bidding.
3-year KTBs worth 1,600 billion won scheduled to be issued on January 29 (Tue) will be fungible with “KTB02000-2112.”
5-year KTBs worth 1,400 billion won is scheduled to be issued on February 12 (Tue). Among the issued amount, KTBs worth 800 billion won will be fungible with “KTB02250-2309.” Among the issued amount, KTBs worth 600 billion won will be fungible with “KTB01875-2403(pre-issuance).”
10-year KTBs worth 1,850 billion won scheduled to be issued on February 19 (Tue) will be fungible with “KTB02375-2812.”
20-year KTBs worth 600 billion won scheduled to be issued on February 26 (Tue) will be fungible with “KTB02375-3809.”
30-year KTBs worth 1,800 billion won is scheduled to be issued on January 30 (Wed). Among the issued amount, KTBs worth 1,000 billion won will be fungible with “KTB02625-4803.” Among the issued amount, KTBs worth 800 billion won will be newly issued as KTB00000-4903 (pre-issuance).
50-year KTBs worth 550 billion won scheduled to be issued on February 18 (Mon) will be fungible with “KTB02000-6809.”
* Auction time: 10:40 am to 11:00 am on the auction day (auction time for KTBs to be pre-issued is 9:40 am to 10:00 am).
2019 February Auction Schedule
(KRW billion)
|
Notice Date of Auction
|
Auction Date
|
Settlement Date
|
Issue Date
|
Amount of Issue
|
|
3-yr KTB
|
5-yr
KTB
|
10-yr
KTB
|
20-yr
KTB
|
30-yr KTB
|
50-yr
KTB
|
|
Thu-01-24
|
Mon-01-28
|
Tue-01-29
|
12-10-2018
|
1,600
|
|
|
|
|
|
|
Fri-02-01
|
Mon-02-11
|
Tue-02-12
|
09-10-2018
03-10-2019
|
|
800
600
|
|
|
|
|
|
Wed-02-13
|
Mon-02-18
|
Tue-02-19
|
12-10-2018
|
|
|
1,850
|
|
|
|
|
Wed-02-20
|
Mon-02-25
|
Tue-02-26
|
09-10-2018
|
|
|
|
600
|
|
|
|
Thu-01-24
|
Tue-01-29
|
Wed-01-30
|
03-10-2018
03-10-2019
|
|
|
|
|
1,000
800
|
|
|
Tue-02-12
|
Fri-02-15
|
Mon-02-18
|
09-10-2018
|
|
|
|
|
|
550
|
2) Non-competitive purchasing option I
For retail investors participating in competitive bidding, KTBs worth 1,450 billion won (not more than 20% of the offering amount in the auction excluding 50-yr KTBs) will be allocated first at the highest accepted bid rate.
3) Non-competitive purchasing option II
A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can purchase differentially, 5%-30%* of the accepted bid amount, and then 3 business days are provided for PDs to make an additional purchase after the auction (excluding 50-yr KTB).
* Up to 20% of the option is granted to the top-performing PDs, 15% to the 2nd best-performing PDs, 10% to the 3rd best-performing PDs, and 5% to the rest, according to their market-making performances for the first half of 2018. MOEF will grant additional 10%p to best performing PDs in the monthly evaluation.
4) Non-competitive purchasing option III
KTB STRIPS are regularly supplied for up to 160 billion won (210 billion won for over 10-yr KTBs) for each maturity period. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.
* On the 3rd business day after the auction, the option is granted according to the outcomes of monthly evaluation conducted in previous month, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.
5) Inflation-linked Korea Treasury Bond (KTBi) Issuance
KTBi underwriting right is granted to PDs differentially within 10% of scheduled issue amount of KTBi, worth 100 billion won for the month, which can be exercised from 14:30 to 15:30 on the auction date of 10-year KTBs.
* If the total amount of the bidding exceeds the issue amount of the month, KTBi will be allocated by the unit of one billion won according to the allocation standards, such as bidding amounts.
Non-PDs & Non-PPDs (individual investors) can purchase KTBi worth up to 10 billion won (up to 10% of the scheduled issue amount for the month) through PDs between the notice date of the 10-year KTB auction and the 1st business day after the auction date.
*KTBi interest rate spread will be adjusted to the average spread of five business days before the competitive 10-year KTB bidding.
6) Conversion offer
The MOEF will conduct one conversion offer worth a total of 100 billion won.
|
Date
|
KTB for Issue
|
KTBs for Purchase
|
Amount
|
|
February 22 (Fri)
10:40~11:00
|
KTBi 01750-2806
(Maturity: 06.10.2028, 10-year)
|
KTBi 02750-2006
KTBi 01500-2106
KTBi 01125-2306
KTBi 01750-2506
KTBi 01000-2606
|
KRW 100 billion
|
Please refer to the attached PDF
For more information on KTBs, http://ktb.moef.go.kr/eng/main.do
