Ministry of Economy and Finance to Issue KRW 800 Billion 30-Year Government Bonds on the 29th

"480 Billion Involves All 18 PDs... 320 Billion Only 10 Participate"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] The Ministry of Economy and Finance announced on the 22nd that it plans to issue 800 billion KRW worth of 30-year government bonds on the 29th through a 'non-competitive subscription' method.

The issuance volume will be announced on the 26th, and the issuance interest rate will be announced at 10:20 AM on the 29th, the day of the auction, reflecting market conditions such as the yield on outstanding bonds.

At the end of last month, the Ministry of Economy and Finance announced it would issue 10.5 trillion KRW worth of government bonds this month, with 800 billion KRW of 30-year bonds scheduled for issuance on the 29th.

Government bond primary dealers (PDs) can bid for demand volumes by maturity. A ministry official stated, "The awarded volume will be allocated proportionally to each PD's bid volume within the pre-announced issuance volume range before the auction day."

PDs will be divided into two groups by maturity for bidding. The groups are divided based on last month's mandatory performance evaluation results.

The scheduled issuance amount for Group 1 is 60% of the 30-year bond issuance amount, which is 480 billion KRW. All 18 PDs (including 11 securities firms and 7 banks, with Kiwoom Securities newly qualified as a PD from the 1st of this month) will participate in bidding.

The scheduled issuance amount for Group 2 is 40% of the issuance amount, which is 320 billion KRW. Only the top 10 institutions in last month's mandatory performance evaluation results can participate in Group 2.