Issuance of 1.3 Trillion KRW in Government Bonds for Individual Investors Next Year... 100 Billion KRW in January
Next Month's National Bond Issuance Limits by Category
10-Year Bonds 80 Billion · 20-Year Bonds 20 Billion
The government will issue approximately 1.3 trillion KRW worth of government bonds for individual investors next year. It plans to issue 100 billion KRW next month.
The Ministry of Economy and Finance announced the plan to issue government bonds for individual investors on the 30th.
The monthly issuance limits by bond type for next month are set at 80 billion KRW for 10-year bonds and 20 billion KRW for 20-year bonds, considering next year's issuance plan and sales status. The coupon rates will apply the winning bid rates of the same maturity government bonds issued this month (10-year 2.665%, 20-year 2.750%). The additional spread will be set at 0.5% for both 10-year and 20-year bonds, reflecting market conditions.
The subscription period is from the 13th to the 15th of next month, and subscription hours are from 9:00 AM to 3:30 PM on business days. Individual investors wishing to purchase can apply for subscription by visiting sales agency branches or online via websites and mobile apps during the subscription period.
If the total subscription amount is within the monthly issuance limit by bond type, the full amount will be allocated. If the total subscription amount exceeds the monthly issuance limit by bond type, all applicants will be allocated up to the standard amount (3 million KRW), and the remaining quantity will be allocated proportionally based on the subscription amount. The allocation results will be announced on the next business day after the subscription period ends.
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The Ministry of Economy and Finance explained, "For reference, the maturity yield of government bonds for individual investors in January is approximately 37% (annual average yield of 3.7%) for 10-year bonds, and approximately 90% (annual average yield of 4.5%) for 20-year bonds on a pre-tax basis." The maturity yield is calculated by applying compound interest annually to the sum of the coupon rate and the additional spread.
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