Basic information - Retail bonds
The retail bonds offered by The Ministry of Finance first of all are dedicated for the individual investor (resident and non-resident) but it could have been purchased also by associations, foundations and another social organisations. The main objective of the retail instruments is co-financing of the borrowing needs of the State budget.
The retail bonds are offered in the retail network, organised by the issue agent - PKO Bank Polski S.A.
Currently, The Ministry of Finance offered the following instruments to individual investors:
- 3-month fixed rate savings bonds (OTS series),
- 2-year fixed rate savings bonds (DOS series),
- 3-year floating rate savings bonds (TOZ series),
- 4-year inflation rate indexed savings bonds (COI series),
- 10-year inflation rate indexed savings bonds (EDO series).
The face value of Treasury bonds offered to individuals is PLN 100.
Those instruments are not listed on the regulated secondary market i.e., the Stock Exchange in Warsaw but they may be offered to the issuer for redemption before their maturity date.
Sale of each series lasts for one month.
Interests on 3-month OTS are put at the investor's disposal at the redemption date. Interests on DOS, EDO accrue annually and are put at the investor's disposal at the redemption date (or pre-maturity redemption), in case of COI series is paid annually. 3-year TOZ bonds give their holder a yield in a form of a coupon paid every 6 months, interest rate for particular coupon period changes and depends 6M WIBOR.
Basic characteristic of retail TS is presented in the table below.
|Issue type||Issued in a dematerialized form and deposited as magnetic entries (bearer form)|
|Face value||100 PLN|
|Maturity||From 3 months to 10 years|
|Sale network||by the issue agent - PKO BP S.A.|
|Turnover regulations||Resident and non-resident individuals, associations, foundations and another social organisations.|
|Secondary market||non trading - early redemption|
How to buy?
Letters of issue