Communication from the Ministry of Finance No 152 / 2012 Coll.
Communication from the Ministry of Finance determining the emission conditions for Discounted savings bond of the Czech Republic, 2012- 2013
Valid
152
COMMUNICATION
Ministry of Finance
of 9 May 2012
determining the emission conditions for the Discounted savings bond of the Czech Republic, 2012-2013
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 "Bonds Act") and determines the emission conditions of Discounted Sovereign Government Bond of the Czech Republic, 2012-2013:
1. Basic characteristics of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Discounted savings bond of the Czech Republic, 2012- 2013
Short name: SSD-D CR, 13
Issue serial number: 71.
Nominal value: 1, - CZK (in words: one crown Czech)
Emission rate: 97,00% 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: 12.12.2012
Issuing date: 12.6.2012
Date of due date: 12 December 2013
Interest income: the difference between the nominal value of the bond and its issue rate
Taxation of interest income: according to Czech legislation
ISIN: CZ0001003594
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. 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 price of the bond subscription shall be rounded to the nearest penny and, where the price of the bond subscription is paid in cash, to the whole crown. 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 subscribed bonds by application for subscription of bonds submitted by the date of completion of the subscription 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 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 issuer may decide on the subscription of any further tranches of bonds in addition to the tranche referred to in point 10 of these emission conditions and determine the date of commencement and the date of termination of the bond subscription of the relevant additional tranche. Notice of further tranches, if any, shall be published on the Ministry of Finance's website and other means of remote access.
12. 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's register is 12 November 2013.
13. 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 of the yield period (standard act / act). Income period means the period from the issue date to the due date. 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 issue to the date of calculation of the proportion of interest income and the actual number of days of the yield period.
14. 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 bond owner in accordance with point 15 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.
15. 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 owns according to the following timetable:
| Datum prvního možného podání žádosti o předčasné splacení | Datum posledního možného podání žádosti o předčasné splacení | Datum předčasného splacení |
|---|---|---|
| 31. 8. 2012 | 29. 11. 2012 | 31. 12. 2012 |
| 3. 12. 2012 | 27. 2. 2013 | 2. 4. 2013 |
| 1. 3. 2013 | 29. 5. 2013 | 1. 7. 2013 |
A bond holder shall not be entitled to a proportion of the interest income over the period from the issue date to the early repayment date. The nominal value of the bonds multiplied by the emission rate 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 cannot 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 owner's debits will be paid to the owner on early repayment in an amount equivalent to their nominal value multiplied by the issue rate and rounded to a penny by a cash-free transfer to a payment account held in domestic currency by the holder of the bond, which is required to be indicated when the bond is subscribed, transferred or transferred. Any change to the payment account shall be notified by the bond holder through the distributor.
16. The issuer declares that, at the maturity date, each bond holder is owed the nominal value of the bonds it owns. The bonds will be repaid at nominal value as of 12.12.2013 unless the bond-holder applies for reinvestment of nominal value of those bonds in accordance with point 18 of these emission conditions. The nominal value of the bonds will be paid to the person who holds the bonds on 12 November 2013.
17. The issuer undertakes to repay the nominal value of the bonds to its owners under these emission conditions. The paying place is the Czech National Bank. The nominal value of the bonds shall be paid by means of an uncash transfer to a payment account held in domestic currency by the holder of the bonds and shall be required to indicate on the subscription, transfer or transfer of bonds, unless the bond holder applies for a reinvestment of the nominal value of those bonds in accordance with point 18 of these emission conditions. Any change to the payment account shall be reported by the bond holder through the distributor.
18. A bond owner shall be entitled to apply to the Ministry of Finance as an issuer through a distributor to reinvest the nominal value of all or part of the bonds it owns of that issue. In such a case, the holder of a bond shall not be paid its nominal value or part thereof by a cash transfer to a payment account in accordance with point 17 of these terms and conditions, but shall be reinvested in the issuer's pre-determined bonds at the required amount by the holder. The notification of the date from which the application for reinvestment of the nominal value of the bonds can be submitted and of the bonds in which the nominal value of the bonds can be reinvested shall be published sufficiently in advance on the website of the Ministry of Finance and other means enabling remote access. A reinvestment shall be requested by the bond owner by submitting a request for reinvestment of the nominal value of the bonds through a distributor. The last day for the application for reinvestment of the nominal value of bonds is 11 November 2013.
19. 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, Moody's at A1 and Fitch Ratings at AA-.
20. 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.
21. All rights associated with bonds, within the meaning of the provisions of Section 42 of the bond law, shall be limited by a period of 10 years from the date on which they could be exercised for the first time.
22. 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.
23. 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.
24. The Ministry of Finance 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 nominal value of bonds, the entries in the Ministry's records, changes in data and other related activities as defined by the Ministry's Ministry's Ministry's Operational Regulations on the separate registration of government bonds.
25. 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. 152 / 2012 Coll., determining the emission conditions for Discounted savings bond of the Czech Republic, 2012-2013 |
|---|---|
| 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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