Treasury Bond Issuance Plan, August 2021
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 12,500 billion won in August 2021 through competitive bidding.
Auction Schedule, August 2021
(Unit: KRW billion)
|
Name
|
Auction Notice
|
Auction Date
|
Settlement Date
|
Issue Date
|
Type
|
Volume
|
|
2Y KTB 00875-2306
|
August 5
|
August 10
|
August 12
|
June 10, 2021
|
F¹
|
600
|
|
2Y KTB 00000-2309
|
September 10, 2021
|
P²
|
400
|
|
3Y KTB 01125-2406
|
August 4
|
August 9
|
August 10
|
June 10, 2021
|
F
|
2,500
|
|
5Y KTB 01250-2603
|
August 18
|
August 23
|
August 24
|
March 10, 2021
|
F
|
1,300
|
|
5Y KTB 00000-2609
|
September 10, 2021
|
P
|
900
|
|
10Y KTB 02000-3106
|
August 11
|
August 17
|
August 18
|
June 10, 2021
|
F
|
2,600
|
|
KTBi 01125-3006
|
August 17
|
August 20
|
August 23
|
September 10, 2020
|
F
|
100
|
|
20Y KTB 01500-4009
|
August 19
|
August 24
|
August 25
|
September 10, 2020
|
F
|
300
|
|
20Y KTB 00000-4109
|
September 10, 2021
|
P
|
250
|
|
30Y KTB 01875-5103
|
July 29
|
August 2
|
August 3
|
March 10, 2021
|
F
|
3,150
|
|
50Y KTB 01625-7009
|
August 10
|
August 13
|
August 17
|
September 10, 2020
|
F
|
400
|
|
Conversion offer
|
Conventional
|
August 3
|
August 6
|
August 10
|
March 10, 2021
|
F
|
200
|
1. Fungible issue
2. Pre-issuance
* Under a fungible issue system, new KTBs issued within a specified period (three-month period for 2Y KTB, six-month period for 3Y, 5Y and 10Y KTB, one-year period for 20Y and 30Y KTB, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.
1) Non-competitive bids option I
For retail investors, KTBs worth 2,420 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 5-35%* of the accepted bid amount within three business days after the auction.
* (2-year to 5-year) 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 last six months. MOEF will grant additional 5~10%p to best performing PDs in the monthly evaluation.
* (10-year to 30-year) 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 (temporarily applied until the third quarter), 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) Buyback
|
Date
|
KTBs to be purchased
|
Amount
|
|
August 11
10:40~11:00 am
|
5Y KTB 01875-2203 (that comes due in March, 2022)
10Y KTB 03750-2206 (that comes due in June, 2022)
5Y KTB 02375-2303 (that comes due in March, 2023)
10Y KTB 03000-2303 (that comes due in March, 2023)
10Y KTB 03375-2309 (that comes due in September, 2023)
|
KRW 200 billion
|
* Further details will be provided on July 9 on the BOK website.
＊Regardless of KRW 200 billion of buybacks in August, the Ministry of Economy and Finance will make an additional purchase of previously-issued KTBs throughout the month of August, which is for the KRW 2 trillion worth of debt repayment plan included in the 2021’s second supplementary budget. And, given market conditions, the Ministry will announce the timing and composition of the debt repayment plan.
5) Conversion offer
|
Date
|
KTB to be issued
|
KTBs to be purchased
|
Amount
|
|
August 6
10:40~11:00 am
|
30Y KTB 01875-5103
(Maturing on March 10, 2051)
|
KTB 01875-2906
KTB 01375-2912
KTB 04000-3112
KTB 02625-3509
|
KRW 200 billion
|
* Further details will be provided on August 6 on the BOK website.
＊Non-competitive option Ⅵ is granted to primary dealers whereby PDs can make additional purchases at a relatively lower yield, which will be announced on the auction day (August 27, Friday). KTBs to be issued and their amount will be announced on August 20, Friday, 05:00 pm at http://ktb.moef.go.kr
Please refer to the attached pdf
