MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
Embargo: 17:00, June 28, 2018 Release Date: 16:30, June 28, 2018
Contact Information: Park Sung Chang (044-215-5131/ Government Bond Policy Division)
JULY 2018TREASURY BOND ISSUANCE PLAN
The Ministry of Strategy and Finance plans to issue Korea Treasury Bonds worth approximately 7,000 billion won in July 2018 through competitive bidding.
1) KTBs of 7,000 billion won will be issued through competitive bidding.
3-year KTB worth 1,550 billion won scheduled to be issued on July 3 (Tue) will be fungible with
“KTB02250-2106.”
5-year KTB worth 1,500 billion won is scheduled to be issued on July 10 (Tue). Among the issued amount, KTB worth 1,000 billion won will be fungible with “KTB02375-2303.” Among the issued amount, KTB worth 500 billion won will be newly issued with “KTB00000-2309 (pre-issuance).”
10-year KTB worth 1,650 billion won scheduled to be issued on July 17 (Tue) will be fungible with
“KTB02625-2806.”
20-year KTB worth 650 billion won scheduled to be issued on July 24 (Tue) will be fungible with
“KTB2250-3709.”
30-year KTB worth 1,650 billion won scheduled to be issued on July 4 (Wed) will be fungible with
“KTB02625-4803.”
* Auction time: 10:40 am to 11:00 am of the auction day (auction time for KTB to be pre-issued is 9:40 am to 10:00 am).
2018 July Auction Schedule
(Unit: KRW bn) 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 Thu-06-28 Mon-07-02 Tue-07-03 06-10-2018 1,550
Wed-07-04 Mon-07-09 Tue-07-10 03-10-2018 09-10-2018
1,000 500
Wed-07-11 Mon-07-16 Tue-07-17 06-10-2018 1,650
Wed-07-18 Mon-07-23 Tue-07-24 09-10-2017 650
Thu-06-28 Tue-07-03 Wed-07-04 03-10-2018 1,650
Press Release
MINISTRY OF STRATEGY AND FINANCE
www.mosf.go.kr
2) Non-competitive purchasing option I
For retail investors participating in competitive bidding, KTBs worth 1,400 billion won (not more than 20%
of the offering amount in the auction) 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 5%- 30%* of the accepted bid amount and then 3 business days are provided for PDs to make an additional purchase after the auction.
* The option is granted up to 20% for the top-performing PDs, 15% for the 2nd best-performing PDs, 10% for the 3rd best- performing PDs, and 5% for the rest, based on their market-making performances of the second half of 2017. MOSF will grant additional 10%p to best performed PDs in the monthly evaluation.
4) Non-competitive purchasing option III
KTBs subject to separate interest and principal are regularly supplied in the amount totaling up to 150 billion won for each maturity period (250 billion won for 30-yr KTB).
PDs that have obtained the right to purchase these KTBs subject to separate interest and principal through an application process can make purchases up to 20 billion won on the 3rd business day after the auction.
* The option is granted in consecutive order following the monthly evaluation conducted in previous month, and PDs have to meet the obligations of separating interest and principal equivalent to the purchased amounts between the first business day and the last business day of next month.
* A PD’s exercise rate for non-competitive purchasing options I, II, and III is the highest accepted bid rate determined by the differential Dutch method.
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 in the month, which can be exercised from 14:30 to 15:30 on the auction date of 10- year KTB.
* If the total amount that a PD bids exceeds the issue amount, it will be allocated by one billion won based on allocation standards including the bidding amount.
Non-PDs & Non-PPDs (individual investors) can purchase KTBi worth up to 10 billion won (up to 10% of scheduled issue amount of KTBi in the month) only through PDs from the notice date of the 10-year KTB auction to the 1st business day after the auction date.
*KTBi interest rate spread will be adjusted to the average rate of spread during five business days before the competitive bidding of 10-year KTB.
6) Buy-back
The MOSF will conduct two buy-backs worth 2,000 billion won in total.
7) Conversion offer
The MOSF will conduct two conversion offers worth 200 billion won in total.
* Appendix 1&2: 2018 July Conversion offer plan
* Appendix 3: 2018 June Korea Treasury Bond Issuance Result
