Czech Republic sells EUR 333mn in 2019, 2023 bonds.

By bne IntelliNews September 19, 2013

The Czech finance ministry sold CZK 8.6bn (EUR 333mn) in 2019 and 2023 government bonds at an auction on September 18, above the maximum planned amount of CZK 8bn, the central bank said.

The ministry sold CZK 4.6bn of the 6.8-year bonds that carry a fixed annual coupon of 1.5% and mature on October 29, 2019, up from CZK 1.9bn sold at the previous auction of the paper held on July 24. This was the seventh tranche of the issue. Investors’ demand strengthened to CZK 7.2bn from CZK 6.8bn at the July auction. Yet, the average yield rose to 1.786% from 1.673%.

The ministry also sold CZK 4bn of the of the bonds that mature on April 18, 2023 and carry a floating interest rate equal to the 12-month EURIBOR. At the previous auction of 2023 bonds held on August 7 the ministry also placed CZK 4bn. Bidders submitted offers worth CZK 7.3bn, down from CZK 8.4bn at the August auction. The average discount margin fell to 10.992bps from 17.341bps. This was the 19th tranche of the issue.

The ministry was planning to sell between CZK 1bn and CZK 4bn in each of the two bonds.

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