May 2019 Treasury Bond Issuance Plan
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 7,700 billion won in May 2019 through competitive bidding.
May 2019 Auction Schedule
(KRW billion)
|
Name
|
Auction Notice
|
Auction Date
|
Settlement Date
|
Issue Date
|
Type1
|
Volume
|
|
3Y KTB 02000-2112
3Y KTB 01625-2206
|
30-Apr
|
07-May
|
09-May
|
10-Dec-2018
10-Jun-2019
|
F
P
|
1,000
850
|
|
5Y KTB 01875-2403
|
08-May
|
13-May
|
14-May
|
10-Mar-2019
|
F
|
1,700
|
|
10Y KTB 02375-2812
10Y KTB 01875-2906
|
15-May
|
20-May
|
21-May
|
10-Dec-2018
10-Jun-2019
|
F
P
|
1,000
850
|
|
20Y KTB 02375-3809
|
22-May
|
27-May
|
28-May
|
10-Sep-2018
|
F
|
500
|
|
30Y KTB 02000-4903
|
02-May
|
08-May
|
09-May
|
10-Mar-2019
|
F
|
1,800
|
1 F = fungible issue, P = pre-issuance
1) Non-competitive bids option I
For retail investors participating in competitive bidding, KTBs worth 1,540 billion won (not more than 20% of the offering amount in the auction) will be allocated first at the highest accepted bid rate.
2) Non-competitive bids option II
A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 5%-30% of the accepted bid amount within three business days after the auction.
* 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% for the rest, according to their market-making performances for the second half of 2018. MOEF will grant additional 10%p to best performing PDs in the monthly evaluation.
3) Non-competitive bids option III
KTB STRIPS are regularly supplied for up to 160 billion won for each maturity (210 billion won for 10Y and 30Y KTBs). 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 the previous month, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.
4) Inflation-linked Korea Treasury Bonds (KTBi)
KTBi underwriting rights are granted to PDs differentially within 10% of the scheduled issue amount for the month (100 billion won), which can be exercised from 14:30 to 15:30 on the auction date of 10Y KTBs, and from 09:00 to 15:30 on the next date of the auction.
* 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 (retail investors) can purchase KTBi worth up to 10 billion won (up to 10% of scheduled issue amount for the month) through PDs between the notice date of the 10Y 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 10Y KTB bidding.
5) Buyback
|
Date
|
KTBs for Purchase
|
Amount
|
|
15-May-2019 10:40~11:00
|
10Y KTB 05000-2006 (that comes due in 2020)
5Y KTB 02000-2009 (that comes due in 2020)
5Y KTB 02000-2103 (that comes due in 2021)
10Y KTB 04250-2106 (that comes due in 2021)
5Y KTB 01375-2109 (that comes due in 2021)
|
KRW 1,000 billion
|
* Details will be released on the BOK website on May 10, 2019.
6) Conversion offer
|
Date
|
KTB for Issue
|
KTBs for Purchase
|
Amount
|
|
*17-May-2019
10:40~11:00
|
30Y KTB 02000-4903
(Maturing on March 10, 2049)
|
KTB 05750-2603
KTB 05250-2703
KTB 05500-2803
KTB 05500-2912
KTB 04750-3012
|
KRW 100 billion
|
|
**24-May-2019
10:40~11:00
|
KTBi 01750-2806
(Maturing on June 10, 2028)
|
KTBi 01500-2106
KTBi 01125-2306
KTBi 01750-2506
KTBi 01000-2606
|
KRW 100 billion
|
* Details will be released on the BOK website on May 14, 2019(*) and on May 21, 2019(**).
Please refer to the attached PDF
For more information on KTBs, http://ktb.moef.go.kr/eng/main.do
