Since the beginning of September, domestic debt placed with the National Bank has increased by 875 million KGS

The volume of government treasury bonds placed by the Ministry of Finance on the National Bank's trading platform increased by 875 million KGS in the first ten days of September, reaching 284.23 billion KGS.

The growth was recorded at the beginning of the week, on 8 September, and is associated with changes in volumes for certain maturity categories.

The increase in debt was partly due to the placement of three-year bonds on 5 September. The Ministry planned to raise 800 million KGS, but demand amounted to only about 600 million. As a result, applications for 245 million KGS were satisfied. The yield on these securities was 12.87% (maximum 12.88%) with a coupon rate of 5%.

The key growth factor was the placement of seven-year bonds. On 5 September, the Ministry of Finance placed an issue worth 1.1 billion KGS, with plans to raise 1.3 billion. Despite declining investor interest, it was these securities that provided the main increase in domestic debt. The yield was 15.25% with a coupon rate of 7%.

At the same time, on 8 September, the Ministry of Finance redeemed an issue of five-year securities worth 470 million KGS. They were placed back in September 2020 at a coupon rate of 6%, and the final yield for investors was 10.93%.