Communication from the Ministry of Finance No. 241 / 2015 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech State bond, 2015 - 2023, 0.45%
Valid
Communication
Text versions:
24.09.2015
241
COMMUNICATION
Ministry of Finance
of 4 September 2015
determining the emission conditions for the Czech State bond, 2015 - 2023, 0,45%
The Czech Republic issues registered government bonds via the Ministry of Finance (hereinafter referred to as "the Ministry ') in accordance with the provisions of Section 26 of Act No. 190 / 2004 Coll., on Bonds, as amended, (hereinafter referred to as" the Act on Bonds'). The Ministry determines these emission conditions which define in more detail the rights and obligations of the issuer and the holders of bonds, as well as information on the issue of bonds and requirements of the State bond of the Czech Republic, 2015 - 2023, 0,45% (hereinafter referred to as "the bond 'or" bonds').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: National bond of the Czech Republic, 2015 - 2023, 0,45%
Short name: Czech Republic, 0.45%, 23
Issue serial number: 97.
Nominal value: 10,000 CZK (in words: 10,000 CZK)
Emission course: determined by auction
form of bond: book-entry bearer security
Type of bond: sovereign bond
Currency in which bonds are denominated: Czech crown (CZK)
Date of start of the deadline for subscription: 23. 9. 2015
Date of expiry of the deadline for subscription: 25.9.2023
Issuing date: 25.9.2015
Due date: 25.10.2023
Debt yield: determined at a fixed interest rate of 0,45% p.a.
Broken Days: ACT / ACT (ICMA)
ISIN: CZ0001004600
Separate principal - ISIN: CZ0000703418
Coupon No 1 - ISIN: CZ0000703426
Coupon No 2 - ISIN: CZ0000703434
Coupon No 3 - ISIN: CZ0000703442
Coupon No 4 - ISIN: CZ0000703459
Coupon No 5 - ISIN: CZ0000703467
Coupon No 6 - ISIN: CZ0000703475
Coupon No 7 - ISIN: CZ0000703483
Coupon No 8 - ISIN: CZ0000703491
2. The bonds are issued on the basis of special laws within the meaning of Section 25 (2) 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 Section 92 (2) of Act No. 256 / 2004 Coll., on capital market business, as amended, by the Central Depository of Securities, a.s., with its registered office Rybná 14, 110 05 Praha 1, Czech Republic, registered by the Municipal Court in Prague, Section B, insert 4308, ID No: 25081489, (hereinafter referred to as "the Central Depository") and persons authorised to keep a central register of book-entry securities kept by a CSD. 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 entitled to exercise the rights associated with the bond on 25 September from 2016 onwards. The right to payment of the bond yield for the period from the date of issue (including this date) to 25 October 2016 (excluding that date) shall be exercised by the person entitled to exercise the rights associated with the bond on 25 September 2016. Transferability of bonds and the possibility to establish a lien on bonds shall be excluded after 25 September 2023.
6. The bond yield is determined at a fixed interest rate of 0,45% p.a. The proceeds of bonds shall be paid once a year at the date of the 25th of the year concerned, starting in 2016. 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 yield period for the payment of the bond yield shall be set from 25 September 2015 (including this date) to 25 October 2016 (excluding that date). The following yield period shall be fixed as annual, from 25.10 (including that date) of the year concerned to 25.10. (excluding that date) of the year following 2016. For the purposes of calculating the yield and the proportional yield of the bond, a fraction of the days based on the convention of the actual number of past days in the period for which the yield or return of the bond is calculated 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. The bond issue will be issued gradually (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.
10. Bonds are offered for subscription in the Czech Republic publicly, and according to Section 26 (4) of the bond law they are sold on the primary market via the Czech National Bank. The primary sale of bonds, the way and place of subscription of bonds, the way and time of delivery of bonds to individual subscribers and the way and place of payment of the issue rate of the subscription bond is governed by the applicable Rules for primary sale of government bonds organised by the Czech National Bank, which are published on the website of the Czech National Bank and the Ministry. 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 in the form of an American auction held on 23 September 2015 by the Czech National Bank. 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 form of the relevant auctions. The auction notice shall be published in sufficient 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 bond issuance is CZK 50 000 000 000 (in words: CZK 50 billion).
13. The bonds will be repaid at nominal value on 25 October 2023. 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 25 September 2023. 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, according to 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 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. The bonds will be repaid and the bond yields will be paid in cash or in cash, according to the instructions of the persons entitled to exercise the rights attached to the bond at the date set by these emission conditions. The paying place is the Czech National Bank, which will publish the way in which bond repayment and bond proceeds will be made.
15. The valid assessment of the financial eligibility (rating) of long-term Crown liabilities at the date of the determination of these emission conditions by Standard & Poor's is at AA level, Moody's at A1 level and Fitch Ratings 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. Any rights attached to bonds and coupons issued to them in accordance with 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 be 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. 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.
20. Bonds are issued according to Czech law and taxation of the yield of the bond takes place according to Czech legislation. 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:
Ing. Babiš v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 241 / 2015 Coll., determining the emission conditions for the Czech State bond, 2015 - 2023, 0.45% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.09.2015 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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