Communication from the Ministry of Finance No 12 / 2008 Coll.
Communication from the Ministry of Finance determining the emission conditions of the Czech Debt, 2008 - 2011, 4.10%
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Communication
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24.01.2008
12
COMMUNICATION
Ministry of Finance
of 15 January 2008
determining the emission conditions of the Czech Debt, 2008 - 2011, 4,10%
The Ministry of Finance issues government bonds in accordance with § 25 of Act No. 190 / 2004 Coll., on Bonds, as amended, (hereinafter referred to as "the Act on Bonds") and determines the emission conditions of the Bonds of the Czech Republic, 2008 - 2011, 4,10%:
1. Basic characteristics of bonds:
Issue: Czech Republic represented by Ministry of Finance
Name: Bonds of the Czech Republic, 2008 - 2011, 4,10%
Short name: Czech Republic, 4.10%, 11
Issuing serial number: 54.
Nominal value: CZK 10 000
Form of the bond: bearer security
Debt form: book-entry security
Issuing date: 28 January 2008
Date of due date: 11 April 2011
Interest income: coupon at fixed interest rate 4,10% p.a.
Taxation of interest income: according to Czech legislation
ISIN: CZ0001002158
Coupon No. 1, ISIN: CZ0000701982
Coupon No 2, ISIN: CZ0000701990
Coupon No 3, ISIN: CZ0000702006
Stranded principal, ISIN: CZ0000701974
2. The bonds are issued under Section 25 (2) of the bond law on the basis of special laws allowing the issue of sovereign debt.
3. The bonds are referred to the bearer and are issued in a book form. Owners' records shall be kept by the Securities Centre.
4. Bonds may be acquired by legal and natural persons with their registered office or residence in the Czech Republic and abroad. Repatriation of income and paid-up nominal value abroad will be carried out according to Czech legislation.
5. The issuer will submit a proposal for the admission of bonds to trading on the main market of the Prague Stock Exchange, a.s.
6. The operative date for the payment of the bond yield shall be one month before the maturity date of the bond yield. The date of the ex- coupon is the day following the operative day and is set at 12 March. Interest income shall always be received by the investor who owns the bond on 11 March of each year, starting in 2009. Interest income for the first period from the date of issue on 28 January 2008 to 11 April 2009 shall be received by the investor who owns the bond on 11 March 2009.
7. The bonds are remunerated at a fixed interest rate of 4,10% p.a. Interest income is paid once a year on 11 April of the year concerned. If the date of payment of the proceeds is not the working day, the payment shall be made on the first following working day without entitlement to the proceeds for such deferral.
8. The transferability of bonds in the Securities Centre shall begin with the date on which the bonds are credited to the accounts of the first owners. The last day of transfers of securities in the securities centre accounts is 11 March 2011.
9. The calculation of the proportion of interest is based on one year of 360 days and 12 months after 30 days (BCK - standard 30E / 360). The proportion of interest income is included in the price of the bond from the issue date.
10. Bonds will be issued in individual parts (tranches). The primary sale of the 1st tranche will take the form of an American auction organised by the Czech National Bank for a group of direct participants on 23 January 2008. Other investors may participate in the auction through direct participants. The auction notice and the list of direct participants will be published in advance. The primary sale of further tranches will be carried out under the same conditions. The emission period shall expire on 11 March 2011.
11. Individual orders submitted to the auction by direct participants are satisfied gradually from the highest price offered. If, in the gradual settlement of orders with a certain price offered, the volume of orders that the issuer sells exceeds the volume of bonds that the issuer sells, orders with that price offered are only partially satisfied. Bonds are sold at offered prices.
12. The total estimated volume of bond issue is CZK 45,000 000 000. Bonds may be issued in smaller or larger volumes in accordance with Section 11 of the bond law to the extent that they correspond to the development and structure of State debt financing. The volume of emissions can be increased to a maximum of CZK 65 000 000 000.
13. The valid assessment of the financial eligibility (rating) of long-term Crown liabilities at the date of issue of these emission conditions by Standard & Poor's is at A level, Moody's level A1.
14. The separation of the bond yield right under Paragraph 18 of the bond law is allowed.
15. The Ministry of Finance declares that it owes each bond holder the nominal value of the bond. The bonds will be repaid at nominal value on 11 April 2011. From this day on, bond interest ends. The nominal value of the bond and the last interest income will be paid to investors who are holders of the bond on 11 March 2011. If the date of repayment of principal is not the working day, the payment shall be made on the first following working day without entitlement to the proceeds for such deferral.
16. Any rights attached to bonds and coupons issued to them within the meaning of Article 42 of the bond law shall be waived within a period of 10 years from the date on which they could be exercised for the first time.
17. The Ministry of Finance undertakes to ensure the payment of interest income on bonds and to repay the nominal value of bonds to their owners according to these emission conditions. The paying place is the Czech National Bank. Coupons and bond principal are paid by cash transfer or cash, according to the instructions of the bond holder. The payment venue shall publish the way in which the coupon payment and repayment of the nominal value will be made.
18. Bonds are direct, unconditional and unsubordinated liabilities of the Czech Republic which are at the same level as all other existing and future direct, unconditional and unsubordinated liabilities of the Czech Republic.
19. The notices to the public regarding these bonds will be published in the Economic Newspapers or other similarly targeted newspapers, commonly available in the Czech Republic and in a way that allows remote access.
20. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version will be decisive.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 12 / 2008 Coll., determining the emission conditions of the Czech Debt, 2008 - 2011, 4.10% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.01.2008 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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