FAQ

Is a Finnish government debt auction calendar published on the Treasury Finland website?
The State Treasury does not publish an auction calendar. Only serial obligations are sold at auction. These are announced on the Treasury Finland website about one week before the auction date.

How can I invest in Finnish government bonds?
You can invest in Finnish government bonds both in the primary market and in the secondary market. Investors can buy Finnish government bonds and T-bills via many banks and asset managers either by investing directly in a bond, or via a fund.

When does the Republic of Finland issue retail bonds?
Retail bonds (yield bonds) are issued when market conditions permit. The issues are announced on this website. The latest yield bond was issued in year 2011.

What is the difference between a serial bond and a benchmark bond?
Most of the serial bonds are benchmark bonds. The primary dealers maintain an active secondary market in benchmark bonds. A serial bond issued by the Republic of Finland can reach benchmark status if the bond meets certain criteria concerning its size, liquidity and investor base.

What is a syndication?
A syndication is a way of issuing a serial bond in the government bond market. The primary dealer banks act as lead managers, the so called syndicate, or syndicate group, in the issue. The Finnish government bonds are usually issued in a syndicated issue. After the issue, it is possible to increase the outstanding amount of the existing government bond in auctions.

What is a collective action clause in a bond?
A collective action clause is a tool for preparing for future government funding crises. Collective action clauses allow the restructuring of debts of governments with insolvency issues. A meeting of creditors may, with the agreement of the debtor and by a qualified-majority decision, amend the terms and conditions of the debt binding upon all creditors (e.g. by extending the loan period, lowering the interest rate or reducing the principal). Individual creditors cannot initiate debt restructuring against the wishes of the majority of creditors; a qualified-majority decision is binding upon all creditors. In accordance with the Treaty Establishing the European Stability Mechanism, standardised and identical Collective Action Clauses ("CACs") will be included in all new euro area government bonds with maturity above one year as of 1 January 2013. More information on CACs can be found on the website of the Economic and Financial Committee at https://europa.eu/efc/collective-action-clauses-euro-area_en.

On certain pages the user has to agree that he/she is not a U.S. person and that he/she will not distribute any information provided on the site in the United States. Why is this?
The click-through page has been added to the website due to U.S. legislation. The Republic of Finland sells bonds to the United States and therefore has to follow the United States Securities Act, which lays down standards for the protection of private investors. As a consequence, the website states that the information on the site does not contain offers for U.S. private investors. The user also has to accept that he/she will not distribute any information provided on the site in the United States. A similar practice is in use on the websites of some other government debt agencies.

Published 2013-03-26 at  10:03 , updated 2016-11-17 at  15:13
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