Announcement of May Treasury Bond Issuance Plan
The Ministry of Strategy and Finance has announced its plan to issue KRW 130 billion worth of personal investment treasury bonds in May. The five-year treasury bonds, which were launched in March this year and have seen significant success, will be issued at KRW 80 billion, an increase of KRW 10 billion from the previous month.
According to the plan announced on the 25th, the total issuance amount is KRW 130 billion, with limits set for each category: KRW 80 billion for five-year bonds, KRW 40 billion for ten-year bonds, and KRW 10 billion for twenty-year bonds.
The five-year treasury bonds have continued their popularity since their initial issuance in March. Last month’s plan was to issue KRW 70 billion, but subscriptions reached KRW 114.9 billion, with the actual allocation at KRW 91.2 billion. The attraction of these bonds is rising due to their “long maturity” advantage while maintaining principal, interest, and tax benefits. Consequently, the issuance amount will increase by KRW 10 billion next month.
The interest rates for bonds held until maturity issued in May are 3.030% per annum for five-year bonds, 3.180% for ten-year bonds, and 3.200% for twenty-year bonds. As a result, the pre-tax yield for maturity will remain the same as in April: approximately 16% for five-year bonds, 37% for ten-year bonds, and 88% for twenty-year bonds.
The subscription period is from May 9 to 15. Individual investors interested in purchasing these bonds can visit a sales agency branch (Mirae Asset Securities) or apply online (via the website or mobile app) during the subscription period.
If the total subscription amount is within the monthly issuance limit for each category, the entire amount will be allocated. If subscriptions exceed the limit, a uniform allocation will be made up to the standard amount of KRW 3 million, with the remaining bonds allocated proportionally based on the subscription amount. The allocation results will be announced on the next business day following the end of the subscription period.