Communication from the Ministry of Finance No. 128 / 2013 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech Republic's coupon savings bond, 2013- 2018, FIX%
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Communication
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27.05.2013
128
COMMUNICATION
Ministry of Finance
of 13 May 2013
determining the emission conditions for the Czech Republic's coupon savings bond, 2013- 2018, FIX%
The Ministry of Finance (hereinafter "the Ministry ') issues government bonds to the extent provided for by a special law and determines their emission conditions in accordance with the provisions of Section 26 of Act No. 190 / 2004 Coll., on Bonds, as amended, (hereinafter" the Act on Bonds'). These emission conditions define the rights and obligations of the issuer and bond owners, as well as information on the issue of bonds and the necessity of the coupon savings bond of the Czech Republic, 2013- 2018, FIX% (hereinafter referred to as "bond 'or" bonds').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Coupon savings bank bond of the Czech Republic, 2013- 2018, FIX%
Short name: SSD-K CR, FIX%, 18
Issue serial number: 81.
Nominal value: 1 CZK (in words: one crown Czech)
Emission rate: 100% (in words: 100%) of nominal value
Form of the bond: bearer security
Debt form: book-entry security
Type of bond: sovereign bond
Currency in which bonds are denominated: Czech crown (CZK)
Date of start of the deadline for subscription: 13.5.2013
Date of expiry of the deadline for subscription: 12.6.2017
Issuing date: 12.6.2013
Date of due date: 12 June 2018
Debt yield: determined at a fixed interest rate fixed for
| první výnosové období | |
| od 12. 6. 2013 do 12. 6. 2014 | |
| ve výši | 0,50 % p. a. |
| druhé výnosové období | |
| od 12. 6. 2014 do 12. 6. 2015 | |
| ve výši | 1,00 % p. a. |
| třetí výnosové období | |
| od 12. 6. 2015 do 12. 6. 2016 | |
| ve výši | 3,00 % p. a. |
| čtvrté výnosové období | |
| od 12. 6. 2016 do 12. 6. 2017 | |
| ve výši | 4,00 % p.a. |
| páté výnosové období | |
| od 12. 6. 2017 do 12. 6. 2018 | |
| ve výši | 6,00 % p.a. |
Taxation of bond yield: according to Czech legislation
ISIN: CZ0001004014
2. The bonds are issued on the basis of special laws within the meaning of Section 25 (2) of the bond law. The issue of bonds is guaranteed by the Ministry.
3. The bonds belong to the bearer, are issued in a book-entry form and are recorded in a separate register, which he keeps pursuant to the provisions of § 35 (1) (d) of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended, by the Ministry, (hereinafter referred to as "the Ministry's records').
4. Bonds can only be subscribed by:
(a) a natural person;
(b) a civil association or an affiliation society;
(c) trade union or employers' organisations;
(d) the Foundation or the Foundation;
(e) a community of general interest;
(f) the building chamber or professional organisation;
(g) a school legal person not established by the Ministry, Region, Municipality or Association of Municipality within the meaning of § 124 (2) of Act No. 561 / 2004 Coll., on pre-school, primary, secondary, higher vocational and other education (the Education Act), as amended,
h) Economic Chamber of the Czech Republic or Agrarian Chamber of the Czech Republic established by Act No. 301 / 1992 Coll., on the Economic Chamber of the Czech Republic and the Agrarian Chamber of the Czech Republic, as amended,
(i) a public university established within the meaning of Act No. 111 / 1998 Coll., on higher education institutions and amending and supplementing other laws (Act on higher education), as amended,
j) a public research institution established within the meaning of Act No. 341 / 2005 Coll., on Public Research Institutions, as amended,
k) Czech Television established by Act No. 483 / 1991 Coll., on Czech Television, as amended, Czech Radio established by Act No. 484 / 1991 Coll., on Czech Radio, as amended, or Czech Press Office established by Act No. 517 / 1992 Coll., on Czech Press Office, as amended,
(l) General Health Insurance Company of the Czech Republic established by Act No. 551 / 1991 Coll., on General Health Insurance Company of the Czech Republic, as amended, or in the department, branch, business and other health insurance company established under Act No. 280 / 1992 Coll., on the department, branch, business and other health insurance companies, as amended,
(m) the local authorities and the higher local authorities of the Czech Republic or the capital of Prague,
n) voluntary association of municipalities established within the meaning of Act No. 128 / 2000 Coll., on Municipality (municipal establishment), as amended,
o) Association of Cities and Municipality of the Czech Republic, Association of Local Government of the Czech Republic or Association of Regions of the Czech Republic,
(p) the association of owners of units within the meaning of Act No. 72 / 1994 Coll., which regulates certain joint ownership relations with buildings and certain ownership relationships with apartments and non-residential premises and complements certain laws (the Housing Act), as amended,
or
(q) a foreign legal person having a similar activity to one of the persons referred to in points (b) to (f);
(hereinafter referred to as "the subscriber 'or" the subscribers').
5. The Ministry does not intend to request the admission of bonds to trading on a European regulated market or on a multilateral trading venue located in a Member State of the European Union. The trading of bonds at those transfer points is excluded.
6. The expected total nominal value of the bond issue is CZK 5 000 000 000 (in words: five billion Czech crowns). The bonds may be issued in less than or greater than the expected nominal value of the bond issue in accordance with the provisions of Section 7 of the bond law. The possible extent of the increase in the volume of bond issuance is CZK 50 000 000 000 (in words: CZK 50 billion).
7. Debt issues may be issued in successive instalments (in tranches) within the subscription deadline.
8. The bonds will be offered by the issuer for subscription in the Czech Republic in the form of a public offer. The activities related to the subscription of bonds are provided by the Ministry and the persons entrusted with such activities ("distributors'). Distributors at the date of the determination of these emission conditions are Česká spořitelna, a.s., Czechoslovak Commercial Bank, a. s., and Komerční banka, a.s. Bonds will also be signed at selected branches of the Czech Post, s.p. The current list of distributors and individual distribution points will be published on the Ministry's website.
9. The subscribers referred to in point 4 of these emission conditions shall submit an application for the subscription of bonds to the relevant tranche via a distributor. One subscriber may subscribe through one application for a bond subscription of at least 1 000 units (in words: one thousand). The subscribers shall, when applying for a bond subscription to the distributor, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions. The bond subscription price is the total nominal value of bonds subscribed by one subscriber multiplied by their issue rate. The subscriber is obliged to pay the price of the bond subscription within five working days of the end of the subscription period of the respective tranche. At the time of payment of the subscription price by the subscriber to the distributor's account, the subscription request becomes binding and cannot be cancelled by the subscriber. From the date of payment of the bond subscription price to the date of issue of the relevant bond tranche, this amount shall not be remunerated. After the date of the end of the subscription period of the respective bond issue tranche, the bonds of the respective tranche cannot be subscribed. In the event that the expected nominal value of the bond issue is reached or exceeded in accordance with point 6 of these terms of issue, the Ministry may decide to reduce the number of units of the subscribed bonds according to the applications for subscription of bonds submitted by the date of completion of the subscription period of the respective tranche of the bond issue. The unsatisfied or partially satisfied subscribers shall be reimbursed the price paid by them for the subscription of bonds which have not been subscribed without undue delay by means of a cash transfer to the payment account from which the funds have been placed in the distributor's account or the payment account indicated in the application for the subscription of bonds in the event of payment of the cash subscription price.
10. The subscription period of the first tranche of the bond issue shall end on 31 May 2013 or on a date to be determined by the issuer, whichever date is earlier.
11. The issuer may decide to issue any further tranches of the issue of bonds following the first tranche in accordance with point 10 of these emission conditions and determine the date of the start and end of the subscription period of the relevant subsequent tranche. Notice of any further tranches shall be published on the Ministry's website.
12. An application for the transfer of bonds shall be submitted via a distributor. Bonds are transferred without settlement. The transfer of bonds is limited in accordance with Section 26 (6) of the bond law. The transfer of bonds shall be permitted only between the persons referred to in point 4 of these emission conditions. The person to whom the bonds are transferred shall, when applying for the transfer of the bonds to the distributor, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions. Transferability of bonds is excluded after 12 May 2018.
(13) The yield of the bond (hereinafter referred to as "yield" or "yield") shall be determined at a fixed interest rate of the amount which increases for each yield period and shall be determined in accordance with point 1 of these emission conditions. Revenue shall be paid once a year, as from 12 June 2014. The total amount of the yield on all the bond holders' bonds paid to the bond holder shall be rounded to a penny after tax levied on the withholding tax at a specific tax rate. If the date of payment of the proceeds is not the working day, the payment of the proceeds shall be made on the first following working day without entitlement to the proceeds for such deferral.
14. The proceeds shall always be received by the person who holds the bonds at 12 May starting in 2014. The proceeds for the first yield period from the date of issue until 12 June 2014 shall be received by the person who holds the bonds on 12 May 2014.
15. The calculation of return and proportional return shall be based on the actual number of calendar days per year and the actual number of days in the relevant yield period. The revenue period shall be the relevant yield period referred to in point 1 of these emission conditions. The proportional return shall be included in the price of the bond from the date of issue and shall be calculated as the yield multiplied by the proportion of the actual number of days from the date of commencement of the relevant yield period to the date of calculation of the proportional return and the actual number of days of the relevant yield period. The total amount of the proportional return on all the bond holders' bonds of this bond issue shall be rounded to the nearest cent in order to calculate the proportional return.
16. The separation of the right to yield from the bond is excluded.
17. The issuer shall not be entitled to early repayment of bonds issued before their due date, unless it applies for early repayment by the bond owner in accordance with point 18 of these emission conditions. The Ministry is entitled to write bonds when they are issued first into the issuer's property account in the Ministry's register within the meaning of Article 15 (4) of the bond law and to acquire bonds before their due date. Own bonds acquired by the issuer before their maturity date shall not be extinguished unless the issuer decides otherwise.
18. The bond owner shall be entitled to ask the Ministry, through a distributor, to repay the nominal value of all or part of the bonds held by him of this bond issue before their due date (hereinafter referred to as "the early repayment request ') in accordance with the following timetable:
| Datum prvního možného podání žádosti o předčasné splacení | Datum posledního možného podání žádosti o předčasné splacení | Datum předčasného splacení |
|---|---|---|
| 1. 4. 2014 | 30. 4. 2014 | 12. 6. 2014 |
| 1. 7. 2014 | 31. 7. 2014 | 12. 9. 2014 |
| 1. 10. 2014 | 31. 10. 2014 | 12. 12. 2014 |
| 2. 1. 2015 | 30. 1. 2015 | 12. 3. 2015 |
| 1. 4. 2015 | 30. 4. 2015 | 12. 6. 2015 |
| 1. 7. 2015 | 31. 7. 2015 | 14. 9. 2015 |
| 1. 10. 2015 | 30. 10. 2015 | 14. 12. 2015 |
| 4. 1. 2016 | 29. 1. 2016 | 14. 3. 2016 |
| 1. 4. 2016 | 29. 4. 2016 | 13. 6. 2016 |
| 1. 7. 2016 | 29. 7. 2016 | 12. 9. 2016 |
| 3. 10. 2016 | 31. 10. 2016 | 12. 12. 2016 |
| 2. 1. 2017 | 31. 1. 2017 | 13. 3. 2017 |
| 3. 4. 2017 | 28. 4. 2017 | 12. 6. 2017 |
| 3. 7. 2017 | 31. 7. 2017 | 12. 9. 2017 |
| 2. 10. 2017 | 31. 10. 2017 | 12. 12. 2017 |
The bond holder shall be entitled to the appropriate proportional return for the period from the date of commencement of the relevant yield period to the early repayment date. The proportional return for the period from the date of commencement of the relevant yield period to the date of early repayment shall be paid after tax levied by withholding tax at a specific tax rate and the nominal value of the bonds concerned shall be paid to the person who holds the bonds on the first working day following the relevant date of the last possible application for early repayment. An application for early repayment shall be submitted by the bond holder through a distributor. As from the time of the application for early repayment, bonds in the number of units in which the application for early repayment was submitted may not be transferred. At one early repayment date, one bond-holder may apply for early repayment of at least 1 000 units (in words: 1 000) on one early repayment application. If the number of shares in the owner's property account is less than 1 000 (in words: one thousand), the holder of the bond may apply for early repayment of its own bonds in terms of less than 1 000 (in words: one thousand) if he applies for early repayment of all shares in the property account registered in the Ministry's register. At one early repayment date, one bond owner may apply for an early repayment of 100% (in words: one hundred percent) of its own bonds up to and including 500 000 (in words: five hundred thousand) and up to and including 50% (in words: fifty percent) of its own bonds over 500 000 (in words: five hundred thousand). Bonds by early repayment shall cease at the same time as the owner's right to return. The amounts corresponding to the nominal value of the owner's bonds and the corresponding pro rata income after tax levied on a withholding basis at a special tax rate shall be paid to the owner of the bonds on early repayment by an uncash transfer to a payment account held in domestic currency in the home country and registered in the ownership account of the owner of the bonds in the Ministry's register. If the date of early repayment is not the working day, such payments shall be made on the first following working day without entitlement to payment of the proceeds for such deferral. Any change to the payment account shall be notified by the bond holder through the distributor. The total amount of the pro rata return on the number of units of bonds in which an application for early repayment has been lodged paid to the holder of the bonds for the period from the date of commencement of the relevant yield period to the date of early repayment shall be rounded to the nearest cent following tax taxation.
19. Bonds shall be repaid at nominal value on 12 June 2018, unless the bond-holder applies for early repayment in accordance with point 18 of these emission conditions or if the holder submits an application for reinvestment in the nominal value of all or the relevant part of the bonds held by it of that bond issue (hereinafter referred to as "the bond reinvestment request") in accordance with point 21 of those emission conditions. This date concludes the interest on bonds. The issuer, within the meaning of Article 17 of the bond law, has decided that the right to repayment of bonds is for the person who is entitled to exercise the rights associated with the bonds on 12 May 2018. The nominal value of all bearer bonds shall be repaid together with the payment of the last yield to the person who holds the bonds on 12 May 2018. If the date of repayment of the nominal value of the bonds and the payment of the last yield is not a working day, such payments shall be made on the first following working day without entitlement to payment of the yield for such deferral.
20. The issuer undertakes to ensure the payment of the proceeds and repayment of the nominal value of the bonds to its owners under these emission conditions. The CSDs, a.s., the Czech National Bank and the Ministry are involved in ensuring the repayment of the bond and the payment of the proceeds. The income after tax collected by withholding tax under the special tax rate shall be paid by cash transfer to a payment account held in domestic currency in the domestic currency and recorded in the property account of the owner of the bonds in the Ministry's register. In the same way, the nominal value of bonds shall also be repaid if the bond-holder does not submit an application for reinvestment of bonds under point 21 of these emission conditions. Any change to the payment account shall be notified by the bondholder to the Ministry through the distributor.
21. A bond holder shall be entitled to apply for a reinvestment of bonds by the Ministry through a distributor to reinvest the nominal value of all or part of the bonds it owns of that bond issue. In such a case, the holder of the bonds shall not be repaid by an uncash transfer to the payment account in accordance with point 20 of these terms and conditions, but shall be reinvested in the required amount in the government bonds previously determined by the Ministry. The application for a reinvestment of bonds cannot be reinvested in the nominal value of bonds encumbered by third parties' rights, in particular liens, or in the nominal value of bonds for which the suspension of the exercise of the owner's right to dispose is recorded in the Ministry's register. The notification of the date from which a request for reinvestment of bonds can be made and of sovereign bonds in which the nominal value of the bonds can be reinvested shall be published sufficiently in advance on the Ministry's website. A bond-holder may, through one request for a reinvestment of bonds, apply for a reinvestment of the nominal value of the bonds held by him in government bonds determined by the Ministry of Finance of at least 1 000 units (in words: one thousand). A reinvestment of the nominal value of all or part of the bonds held by it shall be requested by the Ministry by submitting a request for reinvestment of the bonds through a distributor. The last day for the submission of an application for reinvestment of bonds is 11 May 2018.
22. Only one payment account for the purposes of payment of income, repayment of bonds before their due date and repayment of the nominal value of bonds shall be registered in the property account of the bearer established by the Ministry in the register of the Ministry, for all sovereign debt of the owner registered in the register of the Ministry. All payments referred to in the first sentence shall be made to a payment account registered in the Ministry register two working days before the date of execution of the relevant payment.
23. The valid assessment of the financial capacity (rating) of the long-term Crown liabilities at the date of determination of these emission conditions by Standard & Poor's is at AA level, Moody's at A1 level and Fitch Rating at AA- level.
24. Bonds are direct, unconditional and unsubordinated liabilities of the Czech Republic, which are at the same level with all other existing and future direct, unconditional and unsubordinated liabilities of the Czech Republic.
25. Any rights associated with bonds shall, in accordance with the provisions of Section 42 of the bond law, be limited by a period of 10 years from the date on which they could be exercised for the first time.
26. These emission conditions are announced by the Ministry in the Collection of Laws. The notice to the public concerning these bonds shall be published on the Ministry's website.
27. The operating rules of the Ministry's records shall be published as amended on the Ministry's website and shall be binding on all holders of bonds and distributors and on all persons involved in securing the repayment of bonds and the payment of revenues.
28. The Ministry reserves the right to conduct all acts related to the management of the Ministry's records, the subscription of bonds, the early repayment of bonds, the reinvestment of the nominal value of bonds, entries in the Ministry's records, changes in data and other related activities as defined in the Ministry's Operating Regulations.
29. 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. 128 / 2013 Coll., determining the emission conditions for the Czech Republic's coupon savings bond, 2013- 2018, FIX% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 27.05.2013 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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