October 2020 Treasury Bond Issuance Plan
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 13,500 billion won in October 2020 through competitive bidding.
October 2020 Auction Schedule
(KRW billion)
|
Name
|
Auction Notice
|
Auction Date
|
Settlement Date
|
Issue Date
|
Type1
|
Volume
|
|
3Y KTB 01000-2306
|
September 25
|
October 5
|
October 6
|
June 10, 2020
|
F
|
1,900
|
|
3Y KTB 00000-2312
|
December 12, 2020
|
P
|
1,300
|
|
5Y KTB 01125-2509
|
October 6
|
October 12
|
October 13
|
September 10, 2020
|
F
|
2,500
|
|
10Y KTB 01375-3006
|
October 14
|
October 19
|
October 20
|
June 10, 2020
|
F
|
1,900
|
|
10Y KTB 00000-3012
|
December 12, 2020
|
P
|
1,250
|
|
20Y KTB 01500-4009
|
October 21
|
October 26
|
October 27
|
September 10, 2020
|
F
|
800
|
|
30Y KTB 01500-5003
|
September 28
|
October 6
|
October 8
|
March 10, 2020
|
F
|
3,100
|
|
30Y KTB 00000-7009
|
October 13
|
October 16
|
October 19
|
September 10, 2020
|
F
|
750
|
1 F = fungible issue, P = pre-issuance
1) Non-competitive bids option I
For retail investors, KTBs worth 2,550 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) 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 10%-35%* of the accepted bid amount within three business days after the auction.
* Up to 25% of the option is granted to the top-performing PDs, 20% to the 2nd best-performing PDs, 15% to the 3rd best-performing PDs, and 10% to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5~10%p to best performing PDs in the monthly evaluation.
3) Non-competitive bids option III
KTB STRIPS* are supplied on the third business day after the auctions, 208 billion won for 3Y and 5Y KTBs, 258 billion won for 10Y and 30Y KTBs, and 160 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.
* 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 within 10%* the scheduled amount of issuance for the month, 100 billion won, which can be exercised on the same day of the 10Y KTB auction date and the following day.
* 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 on the 10Y KTB auction date and the following business day after the auction.
* 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
|
|
October 21
10:40~11:00
|
5Y KTB 02000-2103 (that comes due in March, 2021)
3Y KTB 02250-2106 (that comes due in June, 2021)
10Y KTB 04250-2106 (that comes due in June, 2021)
10Y KTB 03750-2206 (that comes due in June, 2022)
|
KRW 1,500 billion
|
* Further details will be provided on October 16 on the BOK website.
6) Conversion offer
|
Date
|
KTB for Issue
|
KTBs for Purchase
|
Amount
|
|
October 8
10:40~11:00
|
10Y KTBi 01125-3006
(Maturing on June 10, 2030)
|
KTBi 01750-2806
KTBi 01000-2606
|
KRW 100 billion
|
|
October 23
10:40~11:00
|
30Y KTB 01500-5003
(Maturing on March 10, 2050)
|
KTB 02250-3709
KTB 01500-3609
KTB 02625-3509
KTB 03750-3312
KTB 04000-3112
KTB 04750-3012
KTB 05500-2912
|
KRW 300 billion
|
* Further details will be provided on October 5, and 20 respectively on the BOK website.
Please refer to the attached PDF
