The Ministry of Finance plans to raise nearly 5 billion KGS in June through a bond issue

The Ministry of Finance of Kyrgyzstan plans to raise 4.85 billion KGS in June through the issuance of government treasury bonds. The National Bank has published the corresponding auction schedule.

The largest share of borrowing traditionally comes from long-term securities. Over the course of the month, the Ministry of Finance plans to issue 10-year bonds with a coupon rate of 8% on two occasions. Each issue will amount to 1.2 billion KGS

An additional 1.6 billion KGS is planned to be raised through the placement of two issues of 7-year bonds with a yield of 7% per annum. Each auction will involve the issuance of 800 million KGS worth of securities.

In addition, on June 19, three-year treasury bonds with a 5% coupon rate will be issued in the amount of 850 million KGS.

Thus, nearly half of the June borrowing program—about 49.5%—will consist of 10-year bonds. Another third of the volume will consist of seven-year securities. This indicates the government’s desire to raise funds for longer terms.

A total of five auctions are scheduled for June. The first will take place on June 5, when investors will be offered ten-year bonds.