The Ministry of Finance has commissioned the Central Bank of the Republic of China to auction on March 4, 2020 the “A09104” Central Government Bonds in accordance with the 2020 Plan for Issuance of Central Government Bonds. The 20-year bonds totaling 30 billion New Taiwan dollars (same currency applies hereinafter) will be issued on March 9, 2020, and the maturity date will be March 9, 2040.
According to the National Treasury Administration of the Ministry of Finance, only Central Government Bonds dealers are allowed to take part in the auction this time. Since 2014, the minimum bid-winning amount of each Central Government Bonds dealer has been set at 0.3% of the Central Government Bonds issued in the previous year. In 2019, the total amount of Central Government Bonds issued was 410 billion dollars, with 100 million dollars per unit and rounding applied. In order to maintain the bidding mechanism, it is specified that the bids won by each Central Government Bonds dealer in the entire year may not be less than 1.2 billion dollars in 2020. Individuals and institutional investors need to submit bids through Central Government Bonds dealers. Auctions of Central Government Bonds will be conducted through competitive bidding. The bid showing the lowest under the established minimum yield rate by the largest margin will be given priority. Settlement amount for each successful bidder is calculated by equivalent price of the highest accepted rate of the auction.
Contact Information: Ms. Chen, Yi-Chen, Debt Management Division