Communication from the Ministry of Finance No 249 / 2023 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech State bond, 2023-2043, VAR%
Valid
Communication
Text versions:
11.08.2023
249
COMMUNICATION
Ministry of Finance
of 30 June 2023
determining the emission conditions for the Czech State bond, 2023-2043, VAR%
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 formalities of the State bond of the Czech Republic, 2023-2043, VAR% (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, 2023-2043, VAR%
Short name: Czech Republic, VAR%, 43
Issue serial number: 155.
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: 16.8.2023
Date of expiry of the deadline for subscription: 19.7.2043
Issuing date: 18.8.2023
Date of due date: 18.8.2043
Debt yield: determined by floating interest rate
Broken Days: ACT / 360
ISIN: CZ0001007041
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 on 19 January and 19 July from 2024 onwards and in the years following that in Annex 1 to these emission conditions. The right to pay the yield of the bond for the period from the date of issue (including this date) to 18.2.2024 (excluding that date) shall be exercised by the person entitled to exercise the rights associated with the bond on 19.1.2024. Transferability of bonds and the possibility to establish a lien on bonds shall be excluded after 19.7.2043.
6. The yield of the bond is determined by the floating interest rate determined by the Ministry for each yield period on the date on which the average reference interest rate is determined. The minimum interest rate for each yield period shall be 0,00% p.a. The interest rate shall be published on the date on which the average reference interest rate is fixed on the Ministry's website. The average reference interest rate shall be determined as the arithmetic average of the reference interest rates for five consecutive working days in accordance with Annex No 2 to these emission conditions, where the last of that date shall be the day preceding the date of establishment of the average reference interest rate in accordance with point 7 of those emission conditions, to the extent of three decimal places; the reference rate thus determined shall be rounded to two decimal places. The reference interest rate for the purposes of these emission conditions is, in relation to the relevant yield period, the value of 6M PRIBOR, which represents the reference value of interest rates as a percentage of p. a. (per annum) for the sale of the CZK deposit for a period of six months on the interbank deposit market. The yield of bonds determined on the basis of the relevant floating interest rate shall be paid twice a year at the date of 18.2 and 18.8 of the relevant year. 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 date on which the average reference interest rate is determined for the purposes of these emission conditions in relation to the relevant yield period shall be the working day preceding the first day of the relevant yield period by two working days. For the purposes of the first yield period, the date of establishment of the average reference interest rate shall be the auction date of the first tranche of the bond issue. If the reference interest rate 6M PRIBOR is not published in any of the five working days referred to in Annex 2 to these emission conditions, the reference interest rate shall be set by the issuer at an arithmetic average of at least two decimal places by listing the interest rate of the sale of the CZK interbank market for a period of six months obtained on that day after 11: 00 (in words: 11) at the Central European Time from at least five banks operating on the CZK interbank market at the choice of the issuer. If it is not possible to determine the relevant reference interest rate on such a day, the last known interest rate of 6M PRIBOR that is closest to that date shall be used for the purposes of determining the average reference interest rate and determining the yield of the bond for the relevant yield period.
8. For the avoidance of doubt, if the reference interest rate 6M PRIBOR ceases to exist or ceases to be used on the interbank deposit market in general as a result of a change in the legal currency of the Czech Republic, the interest rate that will normally be used on the interbank deposit market in the Czech Republic shall be used for the purposes of determining the average reference interest rate according to points 6 and 7 of these emission conditions. The change in the reference rate will be made in accordance with the relevant legislation in force on the date of the transition of the Czech Republic to another legal currency. The provisions of point 7 of these emission conditions shall apply mutatis mutandis to the reference interest rate established in accordance with this point.
9. The period of return shall be set at six months, from 18.8 (including this day) to 18.2 (excluding that day) of the year in question and from 18.2 (including that day) of the year in question to 18.8 (excluding that day) of the year following that in Annex 1 to these emission conditions. The first yield period for the payment of the bond yield shall be from 18.8.2023 (including this date) to 18.2.2024 (excluding that day). The second yield period for the payment of the bond yield shall be from 18.2.2024 (including this day) to 18.8.2024 (excluding that day). For the purposes of any calculation related to bonds issued on the basis of these emission conditions, a fraction of one year 's convention-based days of 360 (in words: three hundred sixty) days and the actual number of past days in the period for which the relevant calculation is made (ACT / 360) 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.
10. The issue of bonds may be issued in instalments (in tranches) within the deadline for subscription.
11. 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.
12. 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.
13. The primary sale of bonds in the first tranche of the bond issue will be carried out through the auction organised on 16 August 2023 by the Czech National Bank according to the Rules for primary sale 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.
14. Bonds may be issued in less than or greater than the total nominal value of the bond issuance 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).
15. The bonds will be repaid at nominal value by 18.8.2043. 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 at 19.7.2043. 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.
16. 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.
17. The valid assessment of the financial eligibility (rating) of long-term crown liabilities at the date of the determination of these emission conditions by S & P Global Ratings is at AA, Moody's at A3, Fitch Ratings at AA-, Japan Credit Rating Agency at AA, R & I at AA-, Scope Ratings at AA- and ACRA at AA.
18. Bonds are direct, unconditional and unsubordinated debts of the Czech Republic, which are at the same level as all other existing and future direct, unconditional and unsubordinated debts of the Czech Republic.
19. 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.
20. 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.
21. The Czech National Bank does not supervise the issue of these bonds or their issuer.
22. 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.
23. Bonds are issued according to Czech law and taxation of bond yield is governed by Czech law in the Czech Republic. 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.
Příloha č. 1
Annex No. 1 of the Emission Conditions for the Czech Republic, 2023-2043, VAR%
| Přehled výnosových období a jednotlivých dat souvisejících s vyplacením výnosu dluhopisu | |||||
|---|---|---|---|---|---|
| Pořadí výnosového období | Den stanovení průměrné referenční úrokové sazby | Výnosové období | Den rozhodný pro vyplacení výnosu dluhopisu | Datum výnosu dluhopisu | |
| od* | do** | ||||
| 1. | 16. 8. 2023 | 18. 8. 2023 | 18. 2. 2024 | 19. 1. 2024 | 18. 2. 2024 |
| 2. | 15. 2. 2024 | 18. 2. 2024 | 18. 8. 2024 | 19. 7. 2024 | 18. 8. 2024 |
| 3. | 15. 8. 2024 | 18. 8. 2024 | 18. 2. 2025 | 19. 1. 2025 | 18. 2. 2025 |
| 4. | 14. 2. 2025 | 18. 2. 2025 | 18. 8. 2025 | 19. 7. 2025 | 18. 8. 2025 |
| 5. | 14. 8. 2025 | 18. 8. 2025 | 18. 2. 2026 | 19. 1. 2026 | 18. 2. 2026 |
| 6. | 16. 2. 2026 | 18. 2. 2026 | 18. 8. 2026 | 19. 7. 2026 | 18. 8. 2026 |
| 7. | 14. 8. 2026 | 18. 8. 2026 | 18. 2. 2027 | 19. 1. 2027 | 18. 2. 2027 |
| 8. | 16. 2. 2027 | 18. 2. 2027 | 18. 8. 2027 | 19. 7. 2027 | 18. 8. 2027 |
| 9. | 16. 8. 2027 | 18. 8. 2027 | 18. 2. 2028 | 19. 1. 2028 | 18. 2. 2028 |
| 10. | 16. 2. 2028 | 18. 2. 2028 | 18. 8. 2028 | 19. 7. 2028 | 18. 8. 2028 |
| 11. | 16. 8. 2028 | 18. 8. 2028 | 18. 2. 2029 | 19. 1. 2029 | 18. 2. 2029 |
| 12. | 15. 2. 2029 | 18. 2. 2029 | 18. 8. 2029 | 19. 7. 2029 | 18. 8. 2029 |
| 13. | 16. 8. 2029 | 18. 8. 2029 | 18. 2. 2030 | 19. 1. 2030 | 18. 2. 2030 |
| 14. | 14. 2. 2030 | 18. 2. 2030 | 18. 8. 2030 | 19. 7. 2030 | 18. 8. 2030 |
| 15. | 15. 8. 2030 | 18. 8. 2030 | 18. 2. 2031 | 19. 1. 2031 | 18. 2. 2031 |
| 16. | 14. 2. 2031 | 18. 2. 2031 | 18. 8. 2031 | 19. 7. 2031 | 18. 8. 2031 |
| 17. | 14. 8. 2031 | 18. 8. 2031 | 18. 2. 2032 | 19. 1. 2032 | 18. 2. 2032 |
| 18. | 16. 2. 2032 | 18. 2. 2032 | 18. 8. 2032 | 19. 7. 2032 | 18. 8. 2032 |
| 19. | 16. 8. 2032 | 18. 8. 2032 | 18. 2. 2033 | 19. 1. 2033 | 18. 2. 2033 |
| 20. | 16. 2. 2033 | 18. 2. 2033 | 18. 8. 2033 | 19. 7. 2033 | 18. 8. 2033 |
| 21. | 16. 8. 2033 | 18. 8. 2033 | 18. 2. 2034 | 19. 1. 2034 | 18. 2. 2034 |
| 22. | 16. 2. 2034 | 18. 2. 2034 | 18. 8. 2034 | 19. 7. 2034 | 18. 8. 2034 |
| 23. | 16. 8. 2034 | 18. 8. 2034 | 18. 2. 2035 | 19. 1. 2035 | 18. 2. 2035 |
| 24. | 15. 2. 2035 | 18. 2. 2035 | 18. 8. 2035 | 19. 7. 2035 | 18. 8. 2035 |
| 25. | 16. 8. 2035 | 18. 8. 2035 | 18. 2. 2036 | 19. 1. 2036 | 18. 2. 2036 |
| 26. | 14. 2. 2036 | 18. 2. 2036 | 18. 8. 2036 | 19. 7. 2036 | 18. 8. 2036 |
| 27. | 14. 8. 2036 | 18. 8. 2036 | 18. 2. 2037 | 19. 1. 2037 | 18. 2. 2037 |
| 28. | 16. 2. 2037 | 18. 2. 2037 | 18. 8. 2037 | 19. 7. 2037 | 18. 8. 2037 |
| 29. | 14. 8. 2037 | 18. 8. 2037 | 18. 2. 2038 | 19. 1. 2038 | 18. 2. 2038 |
| 30. | 16. 2. 2038 | 18. 2. 2038 | 18. 8. 2038 | 19. 7. 2038 | 18. 8. 2038 |
| 31. | 16. 8. 2038 | 18. 8. 2038 | 18. 2. 2039 | 19. 1. 2039 | 18. 2. 2039 |
| 32. | 16. 2. 2039 | 18. 2. 2039 | 18. 8. 2039 | 19. 7. 2039 | 18. 8. 2039 |
| 33. | 16. 8. 2039 | 18. 8. 2039 | 18. 2. 2040 | 19. 1. 2040 | 18. 2. 2040 |
| 34. | 16. 2. 2040 | 18. 2. 2040 | 18. 8. 2040 | 19. 7. 2040 | 18. 8. 2040 |
| 35. | 16. 8. 2040 | 18. 8. 2040 | 18. 2. 2041 | 19. 1. 2041 | 18. 2. 2041 |
| 36. | 14. 2. 2041 | 18. 2. 2041 | 18. 8. 2041 | 19. 7. 2041 | 18. 8. 2041 |
| 37. | 15. 8. 2041 | 18. 8. 2041 | 18. 2. 2042 | 19. 1. 2042 | 18. 2. 2042 |
| 38. | 14. 2. 2042 | 18. 2. 2042 | 18. 8. 2042 | 19. 7. 2042 | 18. 8. 2042 |
| 39. | 14. 8. 2042 | 18. 8. 2042 | 18. 2. 2043 | 19. 1. 2043 | 18. 2. 2043 |
| 40. | 16. 2. 2043 | 18. 2. 2043 | 18. 8. 2043 | 19. 7. 2043 | 18. 8. 2043 |
* including this day
* * this day except
Příloha č. 2
Annex No. 2 of the Emission Conditions for the Czech State Bond, 2023-2043, VAR%
| Přehled dat uveřejnění 6M PRIBOR pro výpočet průměrné referenční úrokové sazby | ||
|---|---|---|
| Pořadí výnosového období | Den stanovení průměrné referenční úrokové sazby | Data stanovení referenční úrokové sazby 6M PRIBOR |
| 1. | 16. 8. 2023 | 9. 8., 10. 8., 11. 8., 14. 8., 15. 8. |
| 2. | 15. 2. 2024 | 8. 2., 9. 2., 12. 2., 13. 2., 14. 2. |
| 3. | 15. 8. 2024 | 8. 8., 9. 8., 12. 8., 13. 8., 14. 8. |
| 4. | 14. 2. 2025 | 7. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 5. | 14. 8. 2025 | 7. 8., 8. 8., 11. 8., 12. 8., 13. 8. |
| 6. | 16. 2. 2026 | 9. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 7. | 14. 8. 2026 | 7. 8., 10. 8., 11. 8., 12. 8., 13. 8. |
| 8. | 16. 2. 2027 | 9. 2., 10. 2., 11. 2., 12. 2., 15. 2. |
| 9. | 16. 8. 2027 | 9. 8., 10. 8., 11. 8., 12. 8., 13. 8. |
| 10. | 16. 2. 2028 | 9. 2., 10. 2., 11. 2., 14. 2., 15. 2. |
| 11. | 16. 8. 2028 | 9. 8., 10. 8., 11. 8., 14. 8., 15. 8. |
| 12. | 15. 2. 2029 | 8. 2., 9. 2., 12. 2., 13. 2., 14. 2. |
| 13. | 16. 8. 2029 | 9. 8., 10. 8., 13. 8., 14. 8., 15. 8. |
| 14. | 14. 2. 2030 | 7. 2., 8. 2., 11. 2., 12. 2., 13. 2. |
| 15. | 15. 8. 2030 | 8. 8., 9. 8., 12. 8., 13. 8., 14. 8. |
| 16. | 14. 2. 2031 | 7. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 17. | 14. 8. 2031 | 7. 8., 8. 8., 11. 8., 12. 8., 13. 8. |
| 18. | 16. 2. 2032 | 9. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 19. | 16. 8. 2032 | 9. 8., 10. 8., 11. 8., 12. 8., 13. 8. |
| 20. | 16. 2. 2033 | 9. 2., 10. 2., 11. 2., 14. 2., 15. 2. |
| 21. | 16. 8. 2033 | 9. 8., 10. 8., 11. 8., 12. 8., 15. 8. |
| 22. | 16. 2. 2034 | 9. 2., 10. 2., 13. 2., 14. 2., 15. 2. |
| 23. | 16. 8. 2034 | 9. 8., 10. 8., 11. 8., 14. 8., 15. 8. |
| 24. | 15. 2. 2035 | 8. 2., 9. 2., 12. 2., 13. 2., 14. 2. |
| 25. | 16. 8. 2035 | 9. 8., 10. 8., 13. 8., 14. 8., 15. 8. |
| 26. | 14. 2. 2036 | 7. 2., 8. 2., 11. 2., 12. 2., 13. 2. |
| 27. | 14. 8. 2036 | 7. 8., 8. 8., 11. 8., 12. 8., 13. 8. |
| 28. | 16. 2. 2037 | 9. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 29. | 14. 8. 2037 | 7. 8., 10. 8., 11. 8., 12. 8., 13. 8. |
| 30. | 16. 2. 2038 | 9. 2., 10. 2., 11. 2., 12. 2., 15. 2. |
| 31. | 16. 8. 2038 | 9. 8., 10. 8., 11. 8., 12. 8., 13. 8. |
| 32. | 16. 2. 2039 | 9. 2., 10. 2., 11. 2., 14. 2., 15. 2. |
| 33. | 16. 8. 2039 | 9. 8., 10. 8., 11. 8., 12. 8., 15. 8. |
| 34. | 16. 2. 2040 | 9. 2., 10. 2., 13. 2., 14. 2., 15. 2. |
| 35. | 16. 8. 2040 | 9. 8., 10. 8., 13. 8., 14. 8., 15. 8. |
| 36. | 14. 2. 2041 | 7. 2., 8. 2., 11. 2., 12. 2., 13. 2. |
| 37. | 15. 8. 2041 | 8. 8., 9. 8., 12. 8., 13. 8., 14. 8. |
| 38. | 14. 2. 2042 | 7. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
| 39. | 14. 8. 2042 | 7. 8., 8. 8., 11. 8., 12. 8., 13. 8. |
| 40. | 16. 2. 2043 | 9. 2., 10. 2., 11. 2., 12. 2., 13. 2. |
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 249 / 2023 Coll., determining the emission conditions for the Czech State bond, 2023-2043, VAR% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 11.08.2023 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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