UPDATE 1-Czechs up bond issuance, to launch new 30-yr bond

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PRAGUE, Nov 2 (Reuters) - The Czech Finance Ministry has raised its target for local currency state bond issuance for the rest of the year by 15 billion crowns ($682.4 million) to cover unplanned payments, the ministry said on Thursday.

It said it would offer a total of 43 billion crowns worth of medium- and long-dated bonds through auctions scheduled for the rest of November and December.

"This raising (of issuance) is due mainly to a decision to repay state guarantees to the central bank, made in 1997 by the end of 2006. Previously these were to be paid in 2007," the ministry said in a statement.

The new issuance plan includes a seven billion crown tranche re-opening the 15-year state bond, and an eight billion crown tranche of a new 30-year bond, the longest-dated paper the country has ever issued.

The ministry had previously scheduled four auctions offering 28 billion crowns' worth of bonds, aiming to place 15 billion crowns in new 3-year benchmark debt, 6 billion in 4-year paper <CZ4YT=RR> and 7 billion in 15-year note <CZ15YT=RR>.

The ministry has earlier projected an 18.8 billion crown hike in its funding requirements before the year-end and had been expected to add one or two medium- or long-dated bond auctions to the calendar if it boosted local currency borrowing. ((Reporting by Alan Crosby, editing by Mike Peacock; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477)) ($1=21.98 Czech Crown)

Keywords: MARKETS CZECH BONDS