The Treasury is set to borrow 2.5 times more money in June than originally planned

The Kyrgyz Ministry of Finance has significantly increased the volume of government treasury bond issues for June. This was reported by the National Bank.

According to the updated schedule, the total volume of government bond placements in June will amount to 12.35 billion KGS. This is 7.5 billion KGS, or 2.5 times more, than was envisaged in the preliminary plan published at the end of May (4.85 billion).

The main change is due to the inclusion in the schedule of an additional issue of three-year bonds with a coupon rate of 12.86%. The auction for these bonds will take place today, 5 June, and the planned placement volume is 7.5 billion KGS.

Thus, the structure of June’s borrowing is as follows:

• three-year bonds at 12.86% — 7.5 billion KGS;
• three-year bonds at 5% — 850 million KGS;
• seven-year bonds at 7% — 1.6 billion KGS;
• ten-year bonds at 8% — 2.4 billion KGS.

On 5 June, in addition to a new issue of three-year bonds worth 7.5 billion KGS, the Ministry of Finance will offer investors ten-year bonds worth 1.2 billion KGS with a coupon rate of 8%.

The decision to significantly increase the volume of borrowing makes June one of the largest months for the placement of government bonds.