Finance Minister: 10 billion crowns for autumn issue of retail bonds would be a success

Finance Minister Miroslav Kalousek has told journalists that if revenue from the planned autumn issue of retail bonds topped 10 billion crowns, the issue would be a success. Investors will be able to order state bonds from November 5 to November 30. The period, however, can be shortened by the Finance Ministry. The ministry will also offer a premium bond with a three-year maturity and annual average yield of 2.77 percent. The bonds will be distributed through branches of postal service operator Česká pošta and of banks Česká spořitelna, ČSOB, Komerční banka and J&T Banka.

The first retail bond issue took place a year ago and investors ordered over 20 billion crowns worth of bonds; the spring issue this year generated around 15 billion. Bonds were available for both Czechs and foreigners, civic associations, foundations and churches, among others, and in the spring also included regions, towns and public universities.

Author: Jan Velinger