Communication from the Ministry of Finance No 233 / 2023 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech State bond, 2023-2029, 5.75%
Valid
Communication
Text versions:
28.07.2023
233
COMMUNICATION
Ministry of Finance
of 30 June 2023
determining the emission conditions for the Czech State bond, 2023-2029, 5,75%
The Ministry of Finance (hereinafter referred to as "the Ministry 'or" the issuer') determines these emission conditions which define in more detail the rights and obligations of the issuer and the holders of the bonds, as well as information on the issue of bonds and the formalities of the State bond of the Czech Republic, 2023-2029, 5,75% (hereinafter referred to as "the bond 'or" bonds'). The bonds are issued by the Czech Republic acting through the Ministry on the basis of § 25 and 26 of Act No. 190 / 2004 Coll., on bonds, as amended, (hereinafter referred to as "the Act on Bonds'), § 35 of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended (hereinafter referred to as" the Budget Rules') and on the basis of Part One (General Provisions) Rules for the primary sale of government bonds organised by the Czech National Bank, as amended, published on the website of the Czech National Bank and the Ministry (hereinafter referred to as "Rules for primary sale '). In particular, the bonds are governed by these terms and conditions, the bond law, the budgetary rules, the rules for primary sales and the procedures and rules contained in the contractual documentation between the issuer and the selected auction participants (hereinafter referred to as" contractual documentation').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Government bond of the Czech Republic, 2023-2029, 5.75%
Short name: Czech Republic, 5.75%, 29
Issuing serial number: 153.
Nominal value: 10,000 CZK (in words: 10,000 CZK)
Type of bond: sovereign bond
Currency in which bonds are denominated: Czech crown (CZK)
Date of start of the deadline for subscription: 26.7.2023
Date of expiry of the deadline for subscription: 28.2.2029
Issuing date: 28.7.2023
Date of maturity: 29.3.2029
Debt yield: determined at a fixed interest rate of 5,75% p.a.
Broken Days: ACT / ACT (ICMA)
ISIN: CZ0001007025
Separate principal - ISIN: CZ000070548
Coupon No 1 - ISIN: CZ0000705355
Coupon No 2 - ISIN: CZ0000705363
Coupon No 3 - ISIN: CZ0000705371
Coupon No 4 - ISIN: CZ0000705389
Coupon No 5 - ISIN: CZ0000705397
Coupon No 6 - ISIN: CZ0000705405
2. The bonds are issued on the basis of budgetary rules within the meaning of Article 25 (2) (b) of the bond law.
3. Bonds are issued as book-entry securities and are registered at the date of issue in the central register of book-entry securities, registered in accordance with § 92 (1) of Act No. 256 / 2004 Coll., on capital market business, as amended, under Czech law by the Central Depository of Securities, a.s., based in Rybná 14, 110 05 Praha 1, Czech Republic, registered by the Municipal Court in Prague, Section B, Insert 4308, ID: 25081489 (hereinafter referred to as "the Central Depository"). A person other than a CSD that is entitled to keep records of book-entry securities shall keep a bond register, if the issuer so decides.
4. Bonds may be subscribed and acquired by legal and natural persons having their registered office or residence in the Czech Republic and abroad (hereinafter referred to as "the subscriber 'or" subscribers').
5. The right to payment of the bond yield shall be exercised by the person who is entitled to exercise the rights attached to the bond at 28 December, starting in 2024. The right to payment of the yield of the bond for the period from the date of issue (including this date) to 29.3.2024 (excluding that date) shall be exercised by the person entitled to exercise the rights associated with the bond at 28.2.2024. Transferability of bonds and the possibility to establish a lien on bonds shall be excluded after 28 February 2029.
6. The bond yield is determined at a fixed interest rate of 5,75% p.a. The proceeds of bonds shall be paid once a year at the date of the 29th of the year concerned, starting in 2024. If the date of the yield of the bond is not a working day, the return of the bond shall be paid on the immediately following working day without entitlement to the return for such postponement.
7. The first period of return for the payment of the bond yield shall be from 28.7.2023 (including this date) to 29.3.2024 (excluding that date). The following yield period shall be fixed as annual, from 29.3 (including that date) of the year concerned to 29.3 (excluding that day) of the year following 2024. For the purposes of any calculation related to bonds issued on the basis of these emission conditions, a fraction of days based on the convention of the actual number of past days in the period for which the relevant calculation is made and the actual number of calendar days in the year [ACT / ACT standard (ICMA)] shall be used. The proportional return on the bond shall be included in the price of the bond from the date of issue, or from the date of commencement of the relevant yield period, to the date of calculation of the proportional return of the bond.
8. Debt issues may be issued in successive instalments (in tranches) within the subscription deadline.
9. The issue rate of the bond of the relevant tranche of the bond issue will be determined by the auction rate. In the case of the issuance of bonds by entering into the issuer's property account pursuant to Article 35 (7) of the budgetary rules, the bond issue rate shall be determined at 100% of the nominal value.
10. The bonds are offered for subscription in the Czech Republic publicly and are sold on the primary market via the Czech National Bank under Section 26 (4) of the bond law. The primary sale of bonds, the method and place of subscription of bonds, the method and deadline for the delivery of bonds to individual subscribers and the manner and place of payment of the issue rate of the subscription bond shall be governed by the rules on primary sales and the procedures and rules contained in the contractual documentation, the procedures and rules contained in the contractual documentation being decisive in the event of a conflict. Primary bond sales are carried out in the form of auctions. The auction place is Česká národní banka. Only a person designated by the issuer or issuer may participate in the auction. Other subscribers may only participate indirectly through persons designated by the issuer or through the issuer. The issuer is entitled to write bonds when they are issued first into the issuer's property account under the provisions of Section 15 (4) of the bond law and to acquire bonds before their due date, including the redemption of bonds at any price at any time after the date of issue and under other conditions determined by the Ministry. Own bonds acquired by the issuer before their maturity date, including bonds repurchased by the issuer, shall not be extinguished and shall be at the discretion of the issuer whether it leaves them in the issuer's possession and, where appropriate, sells them or decides otherwise.
11. The primary sale of bonds in the first tranche of the bond issue will be carried out through an auction organised on 26 July 2023 by the Czech National Bank under the Rules for Primary Sales and according to the procedures and rules contained in the contractual documentation, with the procedures and rules contained in the contractual documentation being decisive in the event of a conflict. The issue and primary sale of bonds by further tranches of the bond issue following the first tranche of the bond issue shall be decided by the issuer and shall determine the date and manner of the relevant auctions according to the primary sale rules. The auction notice and the auction method shall be published in good time before the auction date on the Ministry's website.
12. Bonds may be issued in less than or greater than the total nominal value of the bond issue than the expected nominal value of the bond issue, in accordance with Article 7 of the bond law. The possible extent of the increase in the total nominal value of the bond issue is CZK 20 000 000 000 (in words: CZK 20 billion).
13. The bonds will be repaid at nominal value on 29 March 2029. This date concludes the interest on bonds. The bonds will be repaid together with the payment of the last bond yield to the person who owns the bonds on 28 February 2029. If the date of repayment of the bonds and the payment of the last bond yield is not a working day, such payments shall be made on the immediately following working day without entitlement to the return for such deferral.
14. The issuer undertakes to ensure, under these emission conditions, the payment of bond yields and the repayment of bonds to persons who are entitled to exercise the rights associated with the bond on the date set by those emission conditions, exclusively in the crowns of the Czech or other currency, which will be the legal currency of the Czech Republic at the date of the payment. The Czech National Bank and the Ministry are involved in ensuring the repayment of bonds and the payment of bond yields, either directly or through other mandates. The nominal value of the bonds will be repaid and bond yields will be paid by cash transfer according to the instructions of the persons entitled to exercise the rights associated with the bond at the date set by these emission conditions. The place of payment shall be the Czech National Bank or any other person authorised by the issuer who publishes the way in which the bond repayment and payment of bond yields will be made.
15. The valid assessment of the financial eligibility (rating) of the long-term Crown liabilities at the date of the determination of these emission conditions by S & P Global Ratings is at AA level, Moody's at A3 level, Fitch Ratings at AA- level, Japan Credit Rating Agency at AA level, R & I at AA- level, Scope Ratings at AA- and ACRA at AA level.
16. Bonds are direct, unconditional and unsubordinated debts of the Czech Republic, which are at the same level with all other existing and future direct, unconditional and unsubordinated debts of the Czech Republic.
17. The law relating to the bond shall be limited within the period laid down by the law in force at the time when the law may have been applied for the first time.
18. These emission conditions are announced by the Ministry in the Collection of Laws. An indication of the expected total nominal value of the bond issue shall be made available together with these emission conditions by publication in the Czech language on the Ministry's website in the part where the issuer publishes information on the sovereign debt issued by it. Any further notification to the holders of bonds and to the public concerning those bonds shall also be published in the same way.
19. The Czech National Bank does not supervise the issue of these bonds or their issuer.
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 is decisive.
21. Bonds are issued according to Czech law and taxation of bond yield is governed by Czech law. The rights and obligations of these emission conditions and of bonds issued on their basis shall be governed and interpreted in accordance with Czech law, regardless of the provisions of the conflict standards.
Minister of Finance:
Ing. Stanjura v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 233 / 2023 Coll., determining the emission conditions for the Czech State bond, 2023-2029, 5.75% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.07.2023 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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