MINISTRY OF ECONOMY AND FINANCE
www.moef.go.kr
SEPTEMBER 2018TREASURY BOND ISSUANCE PLAN
The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 5,600 billion won (excluding 50-year KTB) in September 2018 through competitive bidding.
1) KTBs of 5,600 billion won will be issued through competitive bidding.
3-year KTB worth 1,200 billion won scheduled to be issued on August 28 (Tue) will be fungible with
“KTB02250-2106.”
5-year KTB worth 1,200 billion won scheduled to be issued on September 4 (Tue) will be fungible with “KTB02250-2309.”
10-year KTB worth 1,300 billion won scheduled to be issued on September 11 (Tue) will fungible with “KTB02625-2806.”
20-year KTB worth 600 billion won scheduled to be issued on September 18 (Tue) will be fungible with “KTB02375-3809.”
30-year KTB worth 1,300 billion won scheduled to be issued on August 29 (Wed) will be fungible with “KTB02625-4803.”
* Auction time: 10:40am to 11:00am of the auction day (auction time for KTB to be pre-issued is 9:40am to 10:00am).
50-year KTB worth 0 billion won will be newly issued on September 13 (Thu) with “KTB00000- 6809.”
* Detailed information on 50-year KTB will be announced on September 7 (Fri) at 2:00 pm.
Embargo: Release Date: August 23, 2018
Contact Information: Park Sung Chang (044-215-5131/ Government Bond Policy Division)
Press Release
MINISTRY OF ECONOMY AND FINANCE
www.moef.go.kr
2018 September 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
50-yr KTB Thu-08-23 Mon-08-27 Tue-08-28 06-10-2018 1,200
Wed-08-29 Mon-09-03 Tue-09-04 09-10-2018 1,200
Wed-09-05 Mon-09-10 Tue-09-11 06-10-2018 1,300
Wed-09-12 Mon-09-17 Tue-09-18 09-10-2018 600
Thu-08-23 Tue-08-28 Wed-08-29 03-10-2018 1,300
Fri-09-07 Wed-09-12 Thu-09-13 09-10-2018 000
2) Non-competitive purchasing option I
For retail investors participating in competitive bidding, KTBs worth 1,120 billion won (not more than 20% of the offering amount in the auction, excluding 50-yr KTB) 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 differentially 5%-30%* of the accepted bid amount and then 3 business days are provided for PDs to make an additional purchase after the auction (excluding 50-yr KTB).
* 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. MOEF 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.
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 (excluding 50-yr KTBs).
* 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.
MINISTRY OF ECONOMY AND FINANCE
www.moef.go.kr
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) 50-year KTB Issuance
50-year KTB worth 000 billion won will be issued through competitive bidding (dutch auction) on September 12, Wednesday.
7) Buy-back
The MOEF will conduct two buy-backs worth 3,000 billion won in total.
