Communication from the Ministry of Finance No 150 / 2012 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Reinvestment savings bond of the Czech Republic, 2012- 2017, FIX%
Valid
150
COMMUNICATION
Ministry of Finance
of 9 May 2012
determining the terms and conditions of the issue for the Reinvestment savings bond of the Czech Republic, 2012- 2017, FIX%
The Ministry of Finance issues government bonds in accordance with the provisions of Section 25 of Act No. 190 / 2004 Coll., on bonds, as amended, (hereinafter referred to as "the bond law") and determines the emission conditions of the Reinvestment savings bond of the Czech Republic, 2012-2017, FIX%:
1. Basic characteristics of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Reinvestment savings bond of the Czech Republic, 2012-2017, FIX%
Short name: SSD-R CR, FIX%, 17
Issuing serial number: 69.
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
Currency in which bonds are denominated: Czech crown (CZK)
Start date of issue deadline: 10.5.2012
End date of the emission deadline: 12. 6. 2016
Issuing date: 12.6.2012
Date of due date: 12 June 2017
Interest income for the first yield period from 12.6.2012 to 12.6.2013: 1.00% p.a.
Interest income for the second yield period from 12.6.2013 to 12.6.2014: 2.00% p.a.
Interest income for the third yield period from 12.6.2014 to 12.6.2015: 3.00% p.a.
Interest income for the fourth yield period from 12 June 2015 to 12 June 2016: 4,50% p. a.
Interest income for the fifth yield period from 12.6.2016 to 12.6.2017: 6.00% p. a.
Taxation of interest income: according to Czech legislation
ISIN: CZ0001003578
2. The bonds are issued pursuant to the provisions of Section 25 (2) of the bond law on the basis of the special laws on the government bond programme, which allow the issue of government bonds.
3. The bonds belong to the bearer, are issued in a book-entry form and are recorded in a separate register, which is kept under the provisions of § 35 (1) (d) of Act No. 218 / 2000 Coll., on the Budget Rules, as amended, by the Ministry of Finance (hereinafter referred to as the Ministry's Register).
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) registered church or religious society, church association or religious society,
(g) the State Chamber or Professional Organisation;
(h) 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, as amended,
i) Economic Chamber of the Czech Republic or Agrarian Chamber of the Czech Republic established pursuant to Act No. 301 / 1992 Coll., on the Economic Chamber of the Czech Republic and on the Agrarian Chamber of the Czech Republic, as amended,
j) a public university established within the meaning of Act No. 111 / 1998 Coll., on Higher Education and amending and supplementing other laws, as amended,
(k) a public research institution established under Act No. 341 / 2005 Coll., on Public Research Institutions, as amended,
l) Czech Television established under Act No. 483 / 1991 Coll., on Czech Television, as amended, Czech Radio established under Act No. 484 / 1991 Coll., on Czech Radio, as amended, or Czech Press Office established under Act No. 517 / 1992 Coll., on Czech Press Office, as amended,
m) General health insurance company of the Czech Republic established under Act No. 551 / 1991 Coll., on the General Health Insurance Company of the Czech Republic, as amended, or employee insurance company established under Act No. 280 / 1992 Coll., on departmental, branch, corporate and other health insurance companies, as amended,
(n) the local authorities and the higher local authorities of the Czech Republic or the capital of Prague,
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, or
(p) a foreign legal person having similar activities as one of the persons referred to in points (b) to (h).
5. The Ministry of Finance, as an issuer, does not intend to apply for 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 total nominal value of the bond issue is CZK 10 000 000 000 (in words: CZK 10 billion). In accordance with Section 11 of the bond law, bonds may be issued in less than or greater than the expected nominal value of the bond issue. The possible scope of the volume increase is CZK 50 000 000 000 (in words: 50 billion Czech crowns).
7. The issue of bonds may be issued in successive instalments (tranches) within the emission period.
8. The bonds will be offered by the issuer for subscription in the Czech Republic in the form of a public offer, with the exception of the bonds referred to in point 11. The activities related to the subscription of bonds are provided by the Ministry of Finance and the persons entrusted with such activities ("distributors'). The list of distributors shall be published on the website of the Ministry of Finance and other means enabling remote access.
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, demonstrate 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 the underwriting bonds multiplied by their issue rate. The subscriber shall be obliged to pay the price of the bond subscription within five working days of the date of completion of the subscription of the relevant tranche. At the moment of payment of the subscription price by the subscriber to the distributor's account, the application for the subscription of bonds becomes valid, 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 tranche, this amount shall not be remunerated. After the date of completion of the subscription of the relevant bond tranche, applications for subscription of the relevant bond tranche by distributors will no longer be accepted. In the event that the estimated nominal value of the issue is reached or exceeded in accordance with point 6 of these emission conditions, the Ministry of Finance may decide to reduce the number of units of the subscribed bonds in accordance with the applications for subscription of bonds submitted until the date of completion of the subscription of the relevant tranche of the 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 means of a cash transfer to the payment account from which the funds in question have been transferred to the distributor's account or to the payment account indicated in the application for the subscription of bonds in the event of payment of the subscription price in cash. This amount shall not be remunerated from the date of payment of the underwriting price to the date of repayment of the underwritten price.
10. The subscription of the first tranche of bonds shall be terminated on 31 May 2012 or on a date to be determined by the issuer, whichever date is earlier.
11. The issue of further tranches of bonds shall take the form of a reinvestment of the interest income of bonds issued in previous tranches under point 14 of these emission conditions, with the exception of the last interest income, at the date of the reinvestment of interest income.
12. The issuer may decide to subscribe to any further tranches of bonds in addition to those referred to in points 10 and 11 of these emission conditions and to determine the date of commencement and the date of termination of the bond subscription of the relevant tranche. Notice of further tranches, if any, shall be published on the Ministry of Finance's website and other means of remote access.
13. The transferability of bonds in the Ministry's register shall begin with the date on which the bonds are credited to the accounts of the first acquirer. An application for the transfer of bonds shall be submitted via a distributor. Bonds are transferred without settlement. Bonds may only be transferred to the persons referred to in point 4 of these emission conditions. The person to whom the bonds are transferred shall, when submitting the request for the transfer of the bonds to the distributor, demonstrate in a credible manner that they belong to the persons referred to in point 4 of these emission conditions. The last day of bond transfers in the Ministry register is 12 May 2017.
14. Bonds shall be remunerated at a fixed interest rate which increases for each yield period in accordance with point 1 of these emission conditions. Interest income (coupons) shall be reinvested once a year, on 12 June starting from 2013, except for the last interest income that is paid to the bond holder together with the nominal value of the bonds at the maturity date of the bonds, unless the bond holder applies for the reinvestment of the last interest income under point 22 of these emission conditions. The reinvestment of interest income shall mean that at the date of reinvestment of the interest income, bonds of the same issue at the total nominal value corresponding to the amount of interest income on all the bearer's bonds of the same issue for the relevant yield period are credited to the property account of the holder of the bond. If the date of reinvestment of interest income is not a working day, the relevant bonds shall be credited to the owner's property account on the first following working day. For the purposes of reinvestment, the total amount of interest income on all the owner's bonds for the relevant period shall be rounded up to the full crown. The reinvestment of interest income increases the number of bearer bonds and the volume of the issue. The total amount of the last interest income on all the debtors of the owner of the issue paid to the owner, unless the bond owner applies for the reinvestment of the last interest income under point 22 of these terms and conditions, shall be rounded to the nearest cent.
15. The interest income referred to in point 14 of these emission conditions shall always be received by the person who holds the bonds at 12 May starting in 2013. Interest income in the form of reinvestment for the first period of return from the date of issue until 12 June 2013 shall be received by the person who holds the bonds on 12 May 2013.
16. The calculation of the proportion of interest income 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 proportion of interest income shall be included in the price of the bond from the date of issue and shall be calculated as interest income 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 proportion of interest income and the actual number of days of the relevant yield period. The total amount of the proportion of the interest income on all the owner's bonds of this issue shall be rounded to the nearest cent in order to calculate the proportion of the interest income.
17. The separation of the interest income right of the bond from the bond is excluded.
18. The Ministry of Finance as an issuer shall not be entitled to early repayment of bonds issued before the due date, unless it applies for early repayment by the holder of the bonds under point 19 of these emission conditions. The Ministry of Finance is entitled to acquire bonds into its assets within the meaning of Article 15 (4) of the bond law.
19. A bond-holder shall have the right to apply to the Ministry of Finance as an issuer through a distributor for early repayment of all or part of the bonds it holds according to the following timetable:
| Datum prvního možného podání žádosti o předčasné splacení | Datum posledního možného podání žádosti o předčasné splacení | Datum předčasného splacení |
|---|---|---|
| 1. 3. 2013 | 29. 5. 2013 | 1. 7. 2013 |
| 31. 5. 2013 | 29. 8. 2013 | 30. 9. 2013 |
| 2. 9. 2013 | 28. 11. 2013 | 31. 12. 2013 |
| 2. 12. 2013 | 27. 2. 2014 | 31. 3. 2014 |
| 3. 3. 2014 | 29. 5. 2014 | 30. 6. 2014 |
| 2. 6. 2014 | 28. 8. 2014 | 30. 9. 2014 |
| 1. 9. 2014 | 27. 11. 2014 | 31. 12. 2014 |
| 1. 12. 2014 | 26. 2. 2015 | 31. 3. 2015 |
| 2. 3. 2015 | 28. 5. 2015 | 30. 6. 2015 |
| 1. 6. 2015 | 28. 8. 2015 | 30. 9. 2015 |
| 1. 9. 2015 | 27. 11. 2015 | 31. 12. 2015 |
| 1. 12. 2015 | 26. 2. 2016 | 31. 3. 2016 |
| 1. 3. 2016 | 27. 5. 2016 | 30. 6. 2016 |
| 1. 6. 2016 | 30. 8. 2016 | 30. 9. 2016 |
| 1. 9. 2016 | 29. 11. 2016 | 30. 12. 2016 |
The bond holder shall be entitled to a proportion of the relevant interest income over the period from the date of commencement of the relevant yield period to the date of early repayment. The proportion of interest income for the period from the date of commencement of the relevant return period to the date of early repayment and the nominal value of the relevant bonds 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. From the time of the application for early repayment, bonds in the number of units in which the application for early repayment has been submitted may not be transferred to other beneficiaries. 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. At one early repayment date, one bond owner may apply for the early repayment of 100% of the bonds held by him to 500 000 units (in words: five hundred thousand), including a maximum of 50% of the bonds held by him to over 500 000 units (in words: five hundred thousand). Bonds by early repayment shall cease at the same time as the owner's right to interest income. The amount corresponding to the nominal value of the owner's bonds and the proportion of the relevant interest income shall be paid to the owner on early repayment by an uncash transfer to a payment account held in domestic currency in the home country, which the holder of the bond is required to indicate when the bond is subscribed, transferred or transferred. Any change to the payment account shall be notified by the bond holder through the distributor. The total amount of the pro rata part of the interest income on the number of bonds for which the bond holder has requested early repayment paid to the owner 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.
20. The issuer declares that, at the maturity date, each bondholder is owed the nominal value of the bonds it holds. The bonds will be repaid at nominal value on 12 June 2017, unless the bond-holder applies for the reinvestment of the last interest income and the nominal value of those bonds in accordance with point 22 of these emission conditions. This date concludes the interest on bonds. The nominal value of all the owner's bonds, together with the last interest income, will be paid to the person who holds the bonds on 12 May 2017. If the date of repayment of the nominal value of the bonds and the payment of the last interest income per day which is not a working day, the payment shall be made on the first following working day without entitlement to interest income for such deferral.
21. The issuer undertakes to repay the nominal value of the bonds together with the last interest income on the holders of the bonds under these emission conditions. The paying place is the Czech National Bank. The nominal value of the bonds, together with the last interest income, shall be paid by means of a cash transfer to a payment account held in domestic currency by the holder of the bonds, which shall not be required to submit an application for the reinvestment of the last interest income and the nominal value of those bonds in accordance with point 22 of these terms and conditions. Any change to the payment account shall be notified by the bond holder through the distributor.
22. The bond owner is entitled to ask the Ministry of Finance as an issuer through the distributor to reinvest the last interest income and the nominal value of all or part of the bonds it owns of this issue. In such a case, the holder of the bonds shall not be paid the last interest income and nominal value, or any part thereof, by a cash transfer to the payment account in accordance with point 21 of these terms of issue, but shall be reinvested at the desired amount by the holder in the bonds pre-determined by the issuer. The notification of the date from which the request for reinvestment of the last interest income and the nominal value of the bonds can be made and of the bonds in which the last interest income and the nominal value of the bonds can be reinvested shall be published in sufficient time on the website of the Ministry of Finance and other means of remote access. The reinvestment of the last interest income and the nominal value of all or part of the bonds held by it shall be requested by the bond holder by means of a request for reinvestment of the last interest income and the nominal value of the bonds via the distributor. The total amount of the interest income on the owner's bonds in the number of units in which the application for reinvestment of the last interest income and the nominal value of the bonds has been submitted shall be rounded upwards for the purpose of reinvestment of the last interest income and the nominal value of the bonds for the whole crown. The final date for the submission of the request for reinvestment of the last interest rate yield and the nominal value of the bonds is 11.5.2017.
23. The valid assessment of the financial capacity (rating) of the long-term Crown liabilities at the date of the determination of these emission conditions by Standard & Poor's is at AA, Moody's at A1 and Fitch Ratings at AA-.
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 attached to bonds and coupons issued to them under the provisions of Section 42 of the bond law shall be limited by a period of 10 years from the date on which it may have been applied for the first time.
26. These emission conditions are announced in the Collection of Laws. The notice to the public concerning these bonds shall be published on the website of the Ministry of Finance and other means of remote access.
27. The operating rules for the separate registration of government bonds maintained by the Ministry of Finance are binding on all bondholders and are published on the Ministry of Finance's website.
28. The Ministry of Finance reserves the right to conduct all acts relating to the management of the Ministry's records, the subscription of bonds, the early repayment of bonds, the reinvestment of the last interest income and the nominal value of the bonds, the entries in the Ministry's records, changes in data and other related activities as defined by the Operational Code of the State Bond Separate Record maintained by the Ministry of Finance.
29. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of the emission conditions, the Czech version decides.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 150 / 2012 Coll., determining the emission conditions for the Reinvestment savings bond of the Czech Republic, 2012-2017, FIX% |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 22.05.2012 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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