The Ministry of Finance has increased its plan for the placement of government bonds in May to 10.3 billion KGS

The Ministry of Finance of Kyrgyzstan has revised the preliminary issuance volumes for government treasury bonds in May. This was reported by the National Bank of the Republic.

According to the updated schedule, the total volume of government bond placements in May will amount to 10.3 billion KGS, compared to the previously announced 9.8 billion KGS. Thus, the borrowing plan has been increased by 500 million KGS.

The largest issuance is scheduled for May 15—three-year bonds with a coupon rate of 12.86% totaling 3.5 billion KGS. Initially, the volume of this issuance was estimated at 3 billion KGS.

In addition, on May 15, the Ministry of Finance intends to issue:

• 5-year bonds at 6% for 700 million KGS;
• 10-year bonds at 8% for 1.8 billion KGS.

Two more auctions will take place on May 22:

• 7-year bonds at 7% for 2.5 billion KGS;
• 10-year bonds at 8% for 1.8 billion KGS.

Thus, the authorities continue to rely on long-term borrowing. More than half of the total volume of May issuances consists of bonds with maturities ranging from 7 to 10 years.

At the same time, 3-year government bonds with a yield of nearly 13% per annum remain the most expensive instrument for the budget. Servicing the 3.5 billion KGS issue at a rate of 12.86% alone will cost approximately 450 million KGS in annual interest payments.