Communication from the Ministry of Finance No. 130 / 2013 Coll.
Communication from the Ministry of Finance determining the emission conditions for Anti-inflation savings bond of the Czech Republic, 2013- 2020, CPI%
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Communication
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27.05.2013
130
COMMUNICATION
Ministry of Finance
of 13 May 2013
determining the emission conditions for Anti-Inflation Savings Bank bond of the Czech Republic, 2013- 2020, CPI%
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 bondholders, as well as information on the issue of bonds and the necessity of the Anti-inflation savings bond of the Czech Republic, 2013- 2020, CPI% (hereinafter referred to as "bond 'or" bonds').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Anti-inflation sovereign bond of the Czech Republic, 2013- 2020, CPI%
Short name: SSD-I CR, CPI%, 20
Issuing serial number: 83.
Nominal value: 1 CZK (in words: one crown Czech)
Emission rate: 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: 12.12.2019
Issuing date: 12.6.2013
Date of due date: 12.6.2020
Debt yield: determined by floating interest rate
Taxation of bond yield: according to Czech legislation
ISIN: CZ0001003990
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 may be subscribed only by a natural person or by a civil association of natural persons (hereinafter referred to as "the subscriber 'or" subscribers' respectively).
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 10 000 000 000 (in words: 10 billion CZK). 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 scope for increasing the volume of bond issuance is CZK 150 000 000 000 (in words: CZK 150 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 tender, with the exception of the bonds referred to in point 12. The activities related to the subscription of bonds shall be provided by the Ministry and the persons entrusted with such activities, hereinafter referred to as "distributors' or" distributor 'as appropriate. 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 issue tranche, this amount shall not be remunerated. After the date of the end of the subscription period of the respective tranche of bond issuance, bonds cannot be subscribed. In the event that the expected nominal value of the issue of bonds 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 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 bonds. 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 a cash transfer to the payment account from which the funds were placed in the distributor's account or in the payment account indicated in the application for the subscription of bonds in the event of payment of the price of the subscription of bonds in cash.
10. One subscriber may submit, through the distributors, a claim for a bond subscription for each tranche in accordance with points 11 and 13 of these terms and conditions in a total of up to 5 000 000 units (in words: five million) for each individual tranche of the bond issue.
11. 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.
12. The issue of further tranches of bond issuance shall take the form of a reinvestment of bond yields issued in previous tranches under points 15 and 16 of these emission conditions, with the exception of the last bond yield, at the date of the reinvestment of the bond yield.
13. The issuer may decide to issue any further tranches of bond issuance, with the exception of the tranches referred to in points 11 and 12 of these emission terms and conditions, and to determine the date of the start and end of the subscription period of the relevant subsequent tranche. Notice of any further tranches of bond issuance shall be published on the Ministry's website.
14. An application for the transfer of bonds shall be submitted via a distributor. Bonds are transferred without cash 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 2020.
15. The yield of the bond (hereinafter referred to as "yield" or "yield") is determined by the floating interest rate. The interest rate for six months (p., per semestre) for the yield period ending on 12 June shall be fixed as a percentage change in the Basic Index of Consumer Prices (Cost of Living) for the month of April of the year concerned against the Basic Index of Consumer Prices (Cost of Living) for the month October of the previous year, to the extent of six decimal places, increased by 0,25; The interest rate thus determined shall be rounded to five decimal places. The interest rate for six months (p., per semestre) for the yield period ending on 12.12 December shall be fixed as a percentage change in the Basic Index of Consumer Prices (cost of living) for the month of October of the year concerned against the Basic Index of Consumer Prices (cost of living) for the month of April of the same year, in the range of six decimal places, increased by 0,25; The interest rate thus determined shall be rounded to five decimal places. The minimum interest rate for each yield period shall be 0,25% p.s. (per semestre). The interest rate for the relevant yield period and its calculation shall be published on the Ministry's website no later than 20.5 and on 20.11 of the relevant year. The proceeds determined on the basis of this interest rate shall be reinvested in accordance with point 16 of these emission conditions, each on 12.6. and on 12.12, starting on 12.12.2013, except for the last yield paid to the bond-holder, together with the repayment of the nominal value of the bonds at the maturity date of the bonds referred to in point 24 of these emission conditions, unless the bond-holder applies for the reinvestment of the last yield and the nominal value of all or the relevant part of the bonds held by him / her of the bond issue (hereinafter referred to as the "bond reinvestment request ') in accordance with point 25 of those emission conditions. Where a bond holder applies for early repayment under point 22 of these terms and conditions, the amount of the relevant yield for the yield period, the end of which is close to or equal to the relevant early repayment date, shall not be reinvested but paid to the bond owner under point 22 of these terms and conditions.
(16) Reinvestment of the proceeds means that at the date of reinvestment of the proceeds, bonds of the same bond issue at the total nominal value are credited to the property account of the bond owner corresponding to the amount of the return on all the bond holders of the same bond issue after tax collected by withholding at the specific tax rate for the relevant yield period. If the reinvestment date of the proceeds per day is not a working day, the relevant bonds will be credited to the owner's property account on the first following working day. For the purposes of reinvestment, the total amount of the yield of all the bond holders' bonds of the same post-tax issue, collected by withholding on a special tax rate for the relevant yield period, shall be rounded up to the full crown. The reinvestment of the yield increases the number of units of the owner's bonds and the total nominal value of the bond issue. The total amount of the last yield on all the bond holders' bonds paid to the bond owner, unless the bond holder applies for a reinvestment of bonds under point 25 of these emission conditions, shall, after tax taxation, be levied by deduction at a specific tax rate, rounded up to a penny. In the case of bondholders who fail to provide proof of residence and an honest declaration of actual ownership of income, the reduced tax rate levied by deduction under the special tax rate resulting from a double taxation contract or the domestic Income Tax Act cannot be applied. If the above documents are documented after the date of the reinvestment of the proceeds, the amount of the refund will be paid by means of a cash-free transfer to a payment account held in domestic currency in the domestic country and registered in the ownership account of the bond-holder in the Ministry's register according to point 24 of these emission conditions.
17. The period of return shall be set at six months, from 12 June to 12 December of the year concerned and from 12 December of the year concerned to 12 June of the following year. The first period of return for the reinvestment of the proceeds shall be from 12 June 2013 to 12 December 2013. The second period of return for the reinvestment of the proceeds shall be from 12 December 2013 to 12 June 2014.
18. The Basic Index of Consumer Prices (cost of living) for the relevant basic (reference) period is published monthly on the website of the Czech Statistical Office according to the publication date calendar, the relevant basic (reference) period used for its calculation in the relevant month is set by the Czech Statistical Office. In order to determine the interest rate for the relevant yield period according to point 15 of these emission conditions, the aggregate base indices of consumer prices (cost of living) for households in the Czech Republic shall be used. If the Basic Index of Consumer Prices (Cost of Living) for the month of April and October of the relevant year is not published by the Czech Statistical Office at all or if it is published in the relevant year only after 20.5 or only after 20.11, the last known Basic Index of Consumer Prices (Cost of Living) published by the Czech Statistical Office and the relevant Basic Index of Consumer Prices (Cost of Living) of the month preceding the relevant month shall be used to determine the interest rate for the relevant month by six months, or is closest to this previous month.
19. The proceeds determined in accordance with points 15 and 16 of these emission conditions shall always be received by the person who owns the bonds as of 12.11, starting in 2013 and on the dates of 12.5 and 12.11, starting in 2014. The proceeds of the reinvestment of the yield for the first yield period from the date of issue until 12 December 2013 shall be received by the person who holds the bonds on 12 November 2013.
20. The separation of the right to yield from the bond is excluded.
21. 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 22 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.
22. A bond-holder shall be entitled to apply to the Ministry, through a distributor, for repayment of the nominal value of all or part of the bonds held by him of that 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. 10. 2014 | 31. 10. 2014 | 12. 12. 2014 |
| 1. 4. 2015 | 30. 4. 2015 | 12. 6. 2015 |
| 1. 10. 2015 | 30. 10. 2015 | 14. 12. 2015 |
| 1. 4. 2016 | 29. 4. 2016 | 13. 6. 2016 |
| 3. 10. 2016 | 31. 10. 2016 | 12. 12. 2016 |
| 3. 4. 2017 | 28. 4. 2017 | 12. 6. 2017 |
| 2. 10. 2017 | 31. 10. 2017 | 12. 12. 2017 |
| 3. 4. 2018 | 30. 4. 2018 | 12. 6. 2018 |
| 1. 10. 2018 | 31. 10. 2018 | 12. 12. 2018 |
| 1. 4. 2019 | 30. 4. 2019 | 12. 6. 2019 |
| 1. 10. 2019 | 31. 10. 2019 | 12. 12. 2019 |
The nominal value of the bonds and the relevant proceeds after tax collected by withholding at the specific rate of tax for the period from the date of commencement to the date of the end of the relevant yield period, which is close to or equal to the relevant early repayment date, 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 cannot be transferred in the number of units in which the application for early repayment was submitted. 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 relevant income after tax, collected by withholding 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 recorded in the ownership account of the bond holder 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 bondholder to the Ministry through the distributor. The total amount of the relevant yield 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 to the date of expiry of the relevant yield period shall be rounded to a penny after tax levied on the basis of the special tax rate.
23. Bonds shall be repaid at nominal value on the date of 12.6.2020, unless the bond-holder submits an application for early repayment in accordance with point 22 of these emission conditions or if the owner submits an application for reinvestment of bonds in accordance with point 25 of these 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 2020. The nominal value of all the bearer bonds shall be repaid together with the payment of the last yield to the person who holds the bonds on 12 May 2020. 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.
24. The issuer undertakes to ensure the repayment of the nominal value of the bonds together with the payment of the last return to the holders of the bonds under these emission conditions. The CSDs, a.s., the Czech National Bank and the Ministry are involved in securing the repayment of bonds and the payment of revenues. The nominal value of the bonds shall be repaid together with the payment of the last income after tax, collected by withholding at a special tax rate by means of a cash-free transfer to a payment account held in domestic currency in the home country and recorded in the property account of the holder of the bonds in the Ministry's register, unless the bond-holder applies for a reinvestment of bonds under point 25 of these emission conditions. Any change to the payment account shall be notified by the bondholder to the Ministry through the distributor. The total amount of the last yield on all the bond holders' bonds paid to the bond holder shall be rounded to a penny after tax levied by withholding tax on a specific tax rate.
25. A bond-holder shall be entitled to apply for a reinvestment of bonds by the Ministry through a distributor to reinvest the last yield and the nominal value of all or part of all or part of the bonds held by him of this bond issue. In such a case, the bond holder shall not be paid their last return and their total nominal value, or the relevant part thereof, shall not be repaid by means of a cash transfer to a payment account in accordance with point 24 of these terms of issue, but shall be reinvested at the required amount by the holder in government bonds pre-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 the request for reinvestment of bonds can be made and of sovereign bonds in which the latest return and nominal value of bonds can be reinvested shall be published in good time 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 its shares in government bonds determined by the Ministry of Finance of at least 1 000 units (in words: one thousand) and for a reinvestment of the last yield only in its entirety. The reinvestment of the last yield and the nominal value of all or part of all of the bonds held by it shall be requested by the Ministry by submitting a request for reinvestment of the bonds via the distributor. The total amount of the owner's bond yield for the last period of return shall be rounded up to the full crown after tax levied at the special tax rate for the purpose of reinvesting the last yield. The last day for the submission of an application for reinvestment of bonds is 11 May 2020. In the case of bondholders who have applied for the reinvestment of the last proceeds, the amount of the last proceeds after tax shall be reinvested by withholding at a special tax rate at the date of the reinvestment of the bonds. In the case of bondholders who fail to provide proof of residence and an honest declaration of actual ownership of income, the reduced tax rate levied by deduction under the special tax rate resulting from a double taxation contract or the domestic Income Tax Act cannot be applied. If the above documents are documented after the date of the reinvestment of the bonds, the amount of the refund will be paid by means of an uncash transfer to a payment account held in the domestic currency of the country, which is registered in the property account of the owner of the bonds in the Ministry's register, in accordance with point 24 of these emission conditions.
26. 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.
27. 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 level A1 and Fitch Ratings at AA- level.
28. 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.
29. Any rights associated with bonds shall be limited to 10 years from the date on which they could be exercised for the first time, in accordance with Article 42 of the bond law.
30. 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.
31. 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.
32. The Ministry reserves the right to perform all acts related to the management of the Ministry's records, the subscription of bonds, the early repayment of bonds, the reinvestment of the last yield and the nominal value of the bonds, entries in the Ministry's records, changes in data and other related activities defined by the Ministry's Operating Regulations.
33. 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. 130 / 2013 Coll., determining the emission conditions for Anti-inflation savings bond of the Czech Republic, 2013- 2020, CPI% |
|---|---|
| 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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