MINISTRY OF STRATEGY AND FINANCE
Embargo: 17:00, September 30, 2010 Release Date: 16:00, September 30, 2010
Contact Information: SangHyun Kwak : 02-2150-5132 (Government Bond Policy Division)
2010 OCTOBER T
REASURYB
ONDI
SSUANCE,
B
UYBACKS
CHEDULE& SEPTEMBER A
UCTIONR
ESULTThe Ministry of Strategy and Finance plans to issue Korea Treasury Bonds worth 3,500 billion Won in October 2010 through competitive bidding.
1) KTBs of 3,500 billion Won will be issued through competitivebidding.
3-year KTB worth 600 billion Won scheduled to be issued on October 5(Tue)will be fungible with "KTB0375-1306."
5-year KTB worth 1,200 billion Won scheduled to be issued on October 12(Tue)will be fungible with "KTB0400-1509."
10-year KTB worth 1,100 billion Won scheduled to be issued on October 19(Tue)will be fungible with "KTB0500-2006."
20-year KTB worth 600 billion Won scheduled to be issued on October26 (Tue)will be fungible with "KTB0550-2912."
- 2010 October Auction Schedule -
(Unit: billion Won)
Classifi- cation
Auction
Date
Settlement
Date
Issue
Date
Amount of Issue 3-
year KTB
5- year KTB
10- year KTB
20- year KTB Nominal 10-4-2010 10-5-2010 6-10-2010 600
Nominal 10-11-2010 10-12-2010 9-10-2010 1,200
Nominal 10-18-2010 10-19-2010 6-10-2010 1,100
Nominal 10-25-2010 10-26-2010 12-10-2009 600
Press Release
MINISTRY OF STRATEGY AND FINANCE
2)Non-competitive purchasing option F/
For individual investors participating in competitive bidding,700 billion Won KTBs, not more than 20% of the offering amount in the auction, will be allocated first at the 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 10% of the accepted bid amount(up to 25% for top five PDs and 15% for the next top five PDs)and then 3 additional business days is given to PDs for purchase the day after the auction is closed.
- A PD’s exercise rate for non-competitive purchasing option II is the highest accepted bid rate determined by the multi-price auction method.
4) Inflation-linked Korea Treasury Bond (KTBi) Issuance
PDs are granted the right to purchase KTBi up to 20% of the accepted amount of 10-year KTB within 4 business days including the auction day.
- The issue rate of KTBi is calculated by subtracting spread announced by the Korea Exchange right after 10-year KTB auction from the highest accepted rate of 10-year KTB.
* Financial Support: A fund of approximately 1.0 trillion Won will be offered inOctober
– The fund will be provided at low interest rates if PDs present their holding KTBs as collateral.
5) Buyback plan
MOSF will buy back KTBs of KRW 3.0 trillion through two buyback operations in October 2010. For details, refer to Appendix 1.
* Appendix 1: 2010 October KTB Buyback Schedule
Appendix 2: 2010 September Korea Treasury Bond Auction Result
MINISTRY OF STRATEGY AND FINANCE Appendix 1 ’2010 October KTB Buyback Schedule
1. 2010 October KTB Buyback Schedule
The Ministry of Strategy and Finance plans to buy back Korea Treasury Bonds worth approximately 3.0 trillion Won through two buyback operations in October 2010.
(Types and Amount) Types and amount of KTBs for buybacks are as follows.
Buyback Date Types of KTB Amount
Oct. 13, 2010 (Wed) 10:4011:00
KTB 0500-1103 (maturity Mar 2011, 5 year) KTB 0550-1106 (maturity June 2011, 3 year) KTB 0475-1109 (maturity Sept 2011, 5 year) KTB 0475-1112 (maturity Dec 2011 , 3 year) KTB 0712-1201 (maturity Janu 2012, 10 year) KTB 0475-1203 (maturity Mar 2012, 5 year) KTB 0728-1204 (maturity Apr 2012 ,10 year)
1.5 trillion Won
Oct. 27, 2010 (Wed) 10:4011:00
KTB 0500-1103 (maturity Mar 2011, 5 year) KTB 0550-1106 (maturity June 2011, 3 year) KTB 0475-1109 (maturity Sept 2011, 5 year) KTB 0475-1112 (maturity Dec 2011 , 3 year) KTB 0712-1201 (maturity Janu 2012, 10 year) KTB 0475-1203 (maturity Mar 2012, 5 year) KTB 0728-1204 (maturity Apr 2012 ,10 year)
1.5 trillion
Won*
Details will be announced on the website of the Bank of Korea on Oct. 8, and Oct. 22, respectively.
(Anticipatory effect)
The efficiency of the government bond market is expected to improve by purchasing off-the-run KTBs whose trading is not active in the secondary market. In addition, the buyback operation will mitigate roll-over risk by spreading maturity dates, and contribute to the stabilization of the market.
MINISTRY OF STRATEGY AND FINANCE
Appendix 2 ’2010 September Korea Treasury Bond Auction Result
Korea Treasury Bonds worth 6,257billion Won were issued in September 2010.
< 2010 September Nominal KTB Auction Result >
(unit: billion Won)
Classification
Competitive bidding
Non-competitive purchasing
option
Conversion offer (C)
Total (A+B+C) Auction
date
Issue (planned)
Issue Amt.
(weighted avg.
accepted rate,%)
(A)
Period
Issue amount
(B)
3 year KTB (KTB 0375-
1306)
’10.9.6 900 1,000
(3.68) ’10. 9.6~9.9 173 - 1,173 5 year KTB
(KTB 0400- 1509)
’10.9.13 1,700 1,900
(3.89) ’10..9.13~9.16 354 - 2,254 10 year KTB
(KTB 0500- 2006)
’10.9.20 1,200 1,349
(4.28) 10..9.20~9.28 242 1,591 20 year KTB
(KTB 0550- 2912)
’10.9.27 700 901*
(4.48) ’10..9.27~9.30 141 1,0
42
Total 4,500 5,150 910 - 6,060
* 500 million Won is included for allocating first to individual investors (non-competitive purchasing option )
< 2010 September KTBi Auction Result >
(unit: billion Won) Issue
period
Issue (planned)
Issue rate(%)
Issue amount
(A)
Conversion offer (B)
Total (A+B) 10 year KTBi
(KTBi0275- 2006)
’10. 9.
20 ~ 9.28
269 1.92 113 84 197