MINISTRY OF STRATEGY AND FINANCE
Embargo: 17:00, January 27, 2011 Release Date: 16:00, January 27, 2011
Contact Information: SangHyun Kwak : 02-2150-5132 (Government Bond Policy Division)
2011 FEBRUARY T
REASURYB
ONDI
SSUANCE, C
ONVERSIONO
FFERS
CHEDULE& JANUARY A
UCTIONR
ESULTThe Ministry of Strategy and Finance plans to issue Korea Treasury Bonds worth 6,060 billion Won in February 2011 through competitive bidding.
1) KTBs of 6,060 billion Won will be issued through competitivebidding.
3-year KTB worth 1,500 billion Won scheduled to be issued on February 8(Tue)will be fungible with "KTB0300-1312."
5-year KTB worth 1,960 billion Won scheduled to be issued on February 15(Tue)will be fungible with "KTB0400-1509."
10-year KTB worth 1,600 billion Won scheduled to be issued on February 22(Tue)will be fungible with "KTB0500-2006."
20-year KTB worth 1,000 billion Won scheduled to be issued on March2 (Wed)will be fungible with "KTB0475-3012."
- 2011 February 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 2-7-2011 2-8-2011 12-10-2010 1,500
Nominal 2-14-2011 2-15-2011 9-10-2010 1,960
Nominal 2-21-2011 2-22-2011 6-10-2010 1,600
Nominal 2-28-2011 3-2-2011 12-10-2010 1,000
Press Release
MINISTRY OF STRATEGY AND FINANCE
2)Non-competitive purchasing option F/
For individual investors participating in competitive bidding, 1,212 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 trillion Won will be offered inFebruary
– The fund will be provided at low interest rates if PDs present their holding KTBs as collateral.
5) conversion offer plan
MOSF will conduct a conversion offer for KTBs of 500 billion Won in February 2011. For details, refer to Appendix 1.
* Appendix 1: 2011 February KTB Conversion Offer Plan Appendix 2: 2011 January Treasury Bond Auction Result
MINISTRY OF STRATEGY AND FINANCE Appendix 1 ’2011 February KTB Conversion Offer Plan
The Ministry of Strategy and Finance plans to conduct a conversion offer for Korea Treasury Bonds worth 500 billion Won on February. 24, 2011 (Thr).
● Conversion offer date and time
10:4011:00, February. 24, 2011 (Thr)
● Amount : 500 billion Won
● Types of KTB
KTB for issue KTB for purchase
KTB 0400-1509(5 year)
KTB 0475-1403 (5 year) KTB 0525-1403 (10 year) KTB 0425-1409 (10 year) KTB 0500-1409 ( 5 year) KTB 0525-1509(10 year)
● Delivery and settlement date : 15:50, February 28, 2011 (Mon)
Details will be announced on the website of the Bank of Korea on February 21.
(Anticipatory effect) Off-the-run KTBs of low liquidity are exchanged for newly- issued KTBs of high liquidity, which will lead to facilitating the trading of government bonds.
* Non-benchmark KTBs are rarely traded in the market and therefore have very low liquidity. In contrast, newly-issued KTBs are traded actively as a benchmark bond that sets investment criteria.
MINISTRY OF STRATEGY AND FINANCE
Appendix 2 ’2011 January Korea Treasury Bond Auction Result
Korea Treasury Bonds worth 7,231billion Won were issued in January 2011.
< 2011 January 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 0300-
1312)
’11.1.3 1,500 1,500
(3.43) ’11.1.3~1.6 -
367 (KTB 0375- 1306)
1,867
5 year KTB (KTB 0400-
1509)
’11.1.10 2,023 2,023
(4.30) ’11.1.10~1.13 295 - 2,318 10 year KTB
(KTB 0500- 2006)
’11.1.17 1,570 1,570
(4.69) ’11.1.17~1.20- 24 1,594
20 year KTB (KTB 0475-
3012)
’11.1.24 970 985
(4.90) ’11.1.24~1.27 168 1,153
Total 6,063 6,078 487 367 6,932
< 2011 January 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)
’11.1.17~1.20 305 1.74 299 - 299