FinMin Kalousek hopes retail bond issue to generate CZK 10bn

Prague, Oct 22 (CTK) - Czech Finance Minister Miroslav Kalousek told journalists Monday that it would be a success if the revenue from the planned autumn issue of retail bonds would top Kc10bn.

Investors can order state bonds from November 5 to November 30. The Finance Ministry can shorten the period.

The ministry will also offer a premium bond with a three-year maturity and annual average yield of 2.77 percent.

Bonds will be distributed through branches of postal service operator Ceska posta and of banks Ceska sporitelna, CSOB, Komercni banka and J&T Banka.

The first retail bond issue took place a year ago and investors ordered over Kc20bn worth of bonds.

The spring issue this year generated around Kc15bn.

Bonds were available for both Czechs and foreigners, civic associations, foundations and churches, among others, and in the spring also regions, towns and public universities could buy them.

Investors have to buy at least 1,000 bonds with a nominal value of Kc1.

Experts say state bonds are a relatively safe harbour for retail investors.

Besides the three-year premium bond, the Finance Ministry will on December 12 issue a five-year coupon bond with annual yield of 3.22 percent, five-year reinvesting bond with a yield of 3.41 percent p.a., 1.5-year discount bond with a yield of 2.05 percent and seven-year inflation bond whose interest depends on the inflation rate.

Under the state debt management strategy the ministry reckons with a sale of bonds for Kc10bn to Kc20bn in the autumn issue.