The Ministry of Finance sold government bonds at a discount of up to 13.7% of face value

On June 15, the Kyrgyz Stock Exchange saw trading in government treasury bonds and treasury bills totaling over 372.6 million KGS.

The most notable aspect is the placement price of the securities relative to their face value. According to exchange data, two-year treasury bonds were placed at a price of 86.3 KGS per security with a face value of 100 KGS. Thus, investors purchased the securities at a discount of 13.7% to face value.

The issue of 12-month government bills was placed at a price of 90.32 KGS with a face value of 100 KGS. This corresponds to a discount of 9.68%.

The trading volume for two-year government securities amounted to 176.99 million KGS, with 2.05 million securities sold in two transactions. For 12-month bills, the trading volume reached 195.66 million KGS, and investors purchased 2.17 million securities in three transactions.

The placement of government securities below par means that the investor receives income not only from coupon payments but also from the subsequent redemption of the security at full value—100 KGS. The higher the discount to par, the higher the investor’s potential return.