Treasury Bond Issuance Plan, September 2023
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 11,000 billion won in September 2023 through competitive bidding.
Auction Schedule, September 2023
(Unit: KRW billion)
|
Name |
Auction Notice |
Auction Date |
Settlement Date |
Issue Date |
Type |
Volume |
|
|
2Y KTB 03625-2509 (23-8) |
August 31 |
September 5 |
September 7 |
September 10, 2023 |
F1 |
1,400 |
|
|
3Y KTB 03125-2606 (23-4) |
August 30 |
September 4 |
September 5 |
June 10, 2023 |
F |
2,100 |
|
|
5Y KTB 03500-2809 (23-6) |
September 13 |
September 18 |
September 19 |
September 10, 2023 |
F |
1,800 |
|
|
10Y KTB 03250-3306 (23-5) |
September 6 |
September 11 |
September 12 |
June 10, 2023 |
F |
1,900 |
|
|
20Y KTB 03875-4309 (23-9) |
September 14 |
September 19 |
September 20 |
September 10, 2023 |
F |
500 |
|
|
30Y KTB 03625-5309 (23-7) |
August 24 |
August 28 |
August 29 |
September 10, 2023 |
F |
2,900 |
|
|
50Y KTB 03500-7209 (22-12) |
September 5 |
September 8 |
September 12 |
September 10, 2022 |
F |
400 |
|
|
Conversion offer |
Conventional |
September 7 |
September 12 |
September 14 |
September 10, 2023 |
F |
200 |
|
Inflation-linked |
August 29 |
September 1 |
September 5 |
June 10, 2022 |
F |
100 |
|
1. Fungible issue
* 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 2,120 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, 221 billion won for 3Y and 5Y KTBs, 271 billion won for 10Y and 30Y KTBs, and 170 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.
* Purchases are made in a stripped bond type, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.
* Non-competitive option Ⅵ
Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry
will make an announcement on September 14 with a detailed plan.
4) Buyback
|
Date |
KTBs to be purchased |
Amount |
|
September 13 10:40-11:00 am |
KTB 01125-2406 (21-4) KTB 01375-2409 (19-5) KTB 03000-2409 (14-5) KTB 01875-2412 (21-10) KTB 02250-2506 (15-2) KTB 01125-2509 (20-6)
|
KRW 3,000 billion |
* Further details will be provided on September 8 on the BOK website.
5) Conversion offer
|
Date |
KTB to be issued |
KTBs to be purchased |
Amount |
|
September 1 10:40-11:00 am |
KTBi 01625-3206 (Maturing on June 10, 2032) |
KTBi 01000-2606 (16-5) KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5)
|
KRW 100 billion |
|
September 12 10:40-11:00 am |
30Y KTB 03625-5309 (Maturing on September 10, 2053) |
KTB 01375-3006 (20-4) KTB 02375-3112 (21-11) KTB 02625-3509 (15-6) KTB 01500-4009 (20-7)
|
KRW 200 billion |
* Further details will be provided on August 29 and September 7 on the BOK website.
Please refer to the attached PDF.