Communication from the Ministry of Finance No. 276 / 2020 Coll.

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 bond owners, as well as information on the issue of bonds and the necessity of the Czech Anti-inflation sovereign bond, 2020- 2026 IV, CPI% (hereinafter referred to as "bond 'or" bonds').

1. Basic description of bonds:

Issuing: Czech Republic - Ministry of Finance

Name: Anti-inflation government bond of the Czech Republic, 2020-2026 IV, CPI%

Short name: SD-I CR, CPI%, 26 IV

Issue serial number: 128.

Nominal value: 1 CZK (in words: one crown Czech)

Emission rate at issue date: 100% (in words: 100%) of nominal value

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: 15.6.2020

Date of expiry of the deadline for subscription: 1.10.2025

Issuing date: 1.10.2020

Date of maturity: 1.10.2026

Debt yield: determined by floating interest rate

Broken Days: ACT / ACT (ICMA)

ISIN: CZ0001006001

2. The bonds are issued under other laws within the meaning of Section 25 (2) of the bond law. The issue of bonds is guaranteed by the Ministry.

3. The bonds are issued as book-entry securities and, at the date of issue, they are recorded in a separate register, which is kept in accordance with the provisions of § 35 (1) (d) of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended, by the Ministry (hereinafter referred to as "the Ministry's records').

4. Bonds may be subscribed or acquired only by a natural person (hereinafter referred to as "the subscriber 'or" subscribers').

5. The Ministry does not intend to request 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. In accordance with Section 7 of the bond law, bonds may be issued in less than or greater than the expected total nominal value of the bond issue. The possible extent of the increase in the total nominal value of the bond issue is CZK 100 000 000 000 (in words: 100 billion CZK).

7. Debt issues may be issued in successive instalments (in tranches) within the subscription deadline.

8. Bonds with the exception of bonds under point 13 of these emission conditions are offered for subscription in the Czech Republic publicly. The activities related to the subscription of bonds are provided by the Ministry and the persons entrusted by the Ministry to carry out the selected activities ("distributors' or" distributor ', as appropriate). Distributors at the date of the start of the deadline for subscription are Česká spořitelna, a.s., and Czechoslovak Commercial Bank, a. s. The current list of distributors, individual distribution sites and methods of organising and technical security of bond subscription will be published on the Ministry's website.

9. The subscribers referred to in point 4 of these terms and conditions shall submit a request for the subscription of bonds to the relevant tranche of the bond issue in a manner that allows remote access through the Ministry's website and, where appropriate, under the conditions identified and published by the issuer on the Ministry's website, also via a distributor (hereinafter referred to as "subscription request '). One subscriber may subscribe through one application for a bond subscription of at least 1 000 units (in words: one thousand). One subscriber may submit an application for a subscription of bonds of less than 1 000 units (in words: one thousand) if, when applying for a subscription, he applies at the same time, in a way that allows remote access via the Ministry's website, the right linked to other issues of government bonds that have not been waived (hereinafter referred to as" a claim for non-payment or non-payment of nominal value'). One subscriber may submit an application / subscription claim for the subscription of bonds to each tranche of the bond issue referred to in points 12 and 14 of these terms and conditions in a total of not more than 5 000 000 units (in words: five million) for each individual tranche of the bond issue; if the subscriber submits more than one subscription application, the number of units of the underwritten bonds shall be added up. In the case of an application (s) for the subscription of bonds in the total number of units greater than 5 000 000 (in words: five million), each individual application in excess of that total number of units shall be rejected in full. This limit shall include bonds issued on the basis of a request for reinvestment of the nominal value of all or part of the sovereign debt of other bond issues whose issue conditions permit reinvestment and shall not include bonds issued as a result of the reinvestment of the last reinvested bond yield. Bonds cannot be subscribed or acquired to the account of a trust fund within the meaning of § 1448 et seq. of the Civil Code. The bond subscription price of the relevant bond issue tranche shall be the total nominal value of bonds subscribed by one subscriber through one subscription application multiplied by their issue rate (hereinafter referred to as the bond subscription price). The subscriber shall pay the price of the bond subscription of the first tranche of the bond issue by 21 September 2020. The subscription price of other tranches of emissions issued under point 14 of these emission conditions shall be paid by the subscriber within three working days of the date of submission of each individual application for the subscription of the relevant tranche of the bond issue, unless the Ministry determines otherwise at the latest by the date of commencement of the subscription period. The moment at which the price of the bond subscription is paid is the moment when the funds are credited to the Ministry's or the distributor's payment account, and that moment when the subscription application becomes binding on the subscriber and the subscriber can no longer cancel it. In the event of an application / application for a subscription directly to the Ministry, the price of the bond subscription may be paid only by cash transfer to the Ministry's payment account. From the time of payment of the bond subscription price to the date of issue of the relevant bond issue tranche, this amount shall not be remunerated. After the publication date of the end of the subscription period of the respective tranche of bond issuance, bonds of the respective tranche of bond issuance cannot be subscribed, unless otherwise specified by the Ministry. The subscription of bonds under this item of the terms and conditions of the issue shall also mean the reinvestment of the last yield and the nominal value of all or part of the sovereign debt of the other bond issue, the issue conditions of which are recognised by the issuer by the holder of the bond in the bond issue, if the issuer requests such reinvestment; in this case, the date on which the request for such reinvestment was made shall be the date of payment of the bond subscription price. When a claim for non-payment or non-payment of the nominal value is made, the amount corresponding to the amount of the right associated with other sovereign debt issues on the whole crown shall be rounded up; the date of payment of the bond subscription price in this case means the date on which the claim for non-payment or non-payment of the nominal value is submitted.

10. By signing an application for a subscription, the subscribers must state that the purpose and the intended nature (s) of the bond subscription, including the beneficial owner, is in accordance with the nature and requirements laid down in those terms and conditions and does not circumvent those conditions. Furthermore, by signing the application for a subscription, the subscribers must confirm that all the information and information they have provided in connection with the application for a subscription is complete and true. This includes, in particular, data and information relating to the legal status and identification of the subscriber's person mentioned directly in the application for a subscription, as well as data and information provided by the subscriber to the Ministry or distributor in the framework of identification / registration forms or the conclusion of related contracts which are in any way related to the subscription of bonds. In the event of an application / claim for a bond subscription in a total number of more than 300 000 units (in words: three hundred thousand), the issuer is entitled to continue to ask the subscriber for details and information relating to the origin of the funds from which the bond subscription price is paid, including the identification of the source and range of the subscriber's income or other property, through which the subscription price has been paid indirectly and indirectly. In the case of a bond subscription in the total number of units in the previous sentence, the subscriber shall always be required to provide the required data and information on the origin of the funds intended to cover the price of the bond subscription, including the identification of the intended purpose of the bond subscription, by submitting and signing the relevant affidavit; if the subscriber submits more than one subscription application, the number of units of the underwritten bonds shall be added up.

11. In the event that the expected total nominal value of the bond issue is exceeded in accordance with point 31 of these terms and conditions, the issuer may decide, in the period from the date of commencement of the subscription period to the date of issue of the relevant tranche of the bond issue in accordance with points 12 and 14 of these terms and conditions, to reduce proportionally the number of units of the subscribed bonds in the respective tranche of the bond issuance by the subscriber; the result of a pro rata reduction for a single subscriber shall be rounded down to the whole crown. The shortening of the subscribed bonds takes place in such a way that, first of all, the applications for the subscription are reduced to a total of 500 000 units per subscriber (in words: five hundred thousand), with only the number of units exceeding that total number being reduced. In the event that such a reduction results in the maximum expected nominal value of the issue of bonds, applications for subscription of individual subscribers to the total number of units of 500 000 (in words: five hundred thousand) are no longer reduced by any subscriber. If this does not achieve the maximum expected nominal value of the bonds, then in the second round, the pro rata reduction of the underwriting bonds of all subscribers shall be made, irrespective of the total number of units of the underwriting bonds by one subscriber. In addition, the issuer reserves the right to refuse or circumvent an individual application for a subscription in the event that doubts remain on the part of the issuer as to the veracity of the data and information provided, doubts as to whether the bond subscription complies with the nature and requirements laid down in those terms and conditions and does not circumvent them, in particular with regard to the range of persons entitled to acquire such bonds under point 4 of these terms and conditions and other obligations of subscribers under these terms and conditions, including doubts as to the origin of the funds intended or used to cover the subscription price of the bond and the issuer, in particular where the subscriber concerned does not submit the required data, information or documents in accordance with point 10 of these terms and conditions. In the event that doubts persist on the part of the bond issuer or arise only in relation to a part of the subscribed bonds, the issuer shall be entitled to refuse the application for a subscription only in respect of that part of the subscribed bonds. If, as a result of this partial refusal of an application for a subscription, the subscription of one subscriber would be less than 1 000 (in words: one thousand) pieces of bonds, thereby violating the condition to the minimum extent of the subscription of one subscription application under the sentence of the second paragraph of point 9 of these terms of issue, the issuer shall be entitled to reject the application in full. To the unsatisfied or partially satisfied subscribers, the Ministry shall return the price paid by them to the subscription of bonds which have not been subscribed but have already been paid by the subscriber to the payment account of the Ministry or the distributor, without undue delay, only by means of an uncash transfer to the payment account from which the relevant funds have been deposited to the account of the Ministry or distributor, or to the payment account indicated in the subscription application in the event of payment of the cash subscription price of the bond to the distributor.

12. The subscription period of the first tranche of the bond issue shall end on 18.9.2020 or on a date to be determined by the issuer, whichever date is earlier.

13. The issue of further tranches of bond issuance shall take the form of a reinvestment of bond yields issued in the previous tranches of bond issuance in accordance with points 16 and 17 of these emission conditions, with the exception of the last bond yield, at the date of the reinvestment of bond yield. The issue rate of all bonds issued in the form of reinvestment of bond yields at each reinvestment date of the bond yield shall be 100% (in words: 100%) of their nominal value.

14. The issuer may decide to issue any further tranches of bond issuance, with the exception of the tranches of bond issuance in accordance with points 12 and 13 of these emission terms and conditions, and determine the starting date and the closing date of the subscription period of the corresponding additional tranche of bond issuance. The notification of any further tranches of bond issuance shall be published on the Ministry's website. The emission rate of any bonds issued under this item of emission conditions shall always be determined by the issuer taking into account prevailing current financial market conditions and taking into account any corresponding proportional return at the date of issue of the relevant tranche of the bond issue.

15. An application for the transfer of bonds shall be made in a way that allows remote access via the Ministry's website and under conditions determined and published by the issuer on the Ministry's website, where appropriate, via a distributor. Bonds are transferred without settlement. The transferability of bonds is limited in accordance with Section 26 (6) of the bond law, so that bonds can only be transferred to the person referred to in point 4 of these emission conditions. Bonds cannot be entered into a trust fund within the meaning of § 1448 et seq. of the Civil Code. Transferability of bonds and the possibility to establish a lien on bonds shall be excluded after 1.9.2026.

16. The yield of the bond (hereinafter referred to as "yield" or "yield") is determined by the floating interest rate. The 12-month interest rate (p. a, per annum) for the relevant yield period shall be the sum of the percentage change in the Basic Index of Consumer Prices (cost of living) for the month of July of the relevant year against the Basic Index of Consumer Prices (cost of living) for the month of July of the previous year, to the extent of six decimal places, and a margin of 0,50% per annum; the interest rate thus determined shall be rounded to five decimal places. The minimum interest rate for each yield period shall be 0,50% p.a. The interest rate for the relevant yield period and its calculation shall be published on the Ministry's website no later than 20 August of the relevant year. The proceeds determined on the basis of this interest rate shall be reinvested once a year in accordance with point 17 of these emission conditions, at the date of 1.10 of the relevant year starting in 2021, except for the last yield which is paid to the bond-holder, together with the repayment of the nominal value of the bonds at the maturity date of the bonds referred to in point 25 of these emission conditions, unless the bond-holder applies for the reinvestment of the last yield and the nominal value of all or the relevant part of the bonds held by the bond-holder in accordance with point 26 of these emission conditions (hereinafter referred to as the "bond reinvestment request '). If bonds are repaid before the specified maturity date referred to in point 23 of these terms and conditions, the amount of the relevant yield for the yield period ending on the corresponding early repayment date shall not be reinvested in accordance with point 17 of these terms and conditions but paid to the bond owner in accordance with points 23 and 25 of these terms and conditions; a part of the sentence in front of the semicolon shall apply mutatis mutandis in the case of the repayment of bonds before their due date in accordance with point 22 of these emission conditions, with the proportional return being paid to the bond holder concerned in accordance with point 22 of these emission conditions.

17. Reinvestment of proceeds means that, at the date of reinvestment of the proceeds, bonds of the same bond issue at the total nominal value are credited to the property account of the owner of the bonds in the register of the Ministry, corresponding to the amount of the return on all the bonds of the owner of the same bond issue after tax, collected at a special tax rate (hereinafter referred to as "withholding tax") for the relevant period. If the reinvestment date of the proceeds per day is not a working day, the relevant bonds will be credited to the owner's property account on the first following working day. For the purposes of reinvestment, the total amount of the yield on all the bond holders' bonds of the same post-tax issue, collected at a special tax rate for the relevant yield period, shall be rounded up to the full crown. The reinvestment of the proceeds increases the number of bond holders' bonds in its property account in the Ministry's register and the total nominal value of the bond issue. The total amount of the last yield on all the bond holders' bonds paid to the bond owner, unless the bond holder applies for reinvestment of bonds under point 26 of these emission conditions, shall be rounded to a penny after tax levied by a deduction at a specific tax rate. For the purposes of taxation of income by the withholding tax rate for tax residents of the Czech Republic, it is necessary to prove to the tax payer residence for tax purposes in the Czech Republic, for example, a valid identity card or an honest declaration. As regards tax non-residents of the Czech Republic, for the purposes of applying the preferential tax rate resulting from the relevant international double taxation agreement or from the Income Tax Act, it is necessary to demonstrate to the tax residence by supporting the tax residence certificate issued by the competent foreign tax administrator of the Contracting State. A Contracting State shall mean a Member State of the European Union and the European Economic Area and a State with which a valid and effective agreement or agreement is concluded containing provisions on the exchange of information on tax matters. In addition, for the purposes of applying the relevant withholding tax rates, it is also necessary to provide evidence of an honest declaration of actual ownership of income and, where appropriate, to provide evidence of the fulfilment of any additional conditions laid down in the relevant double taxation agreement. If the above documents are not substantiated at the latest on the day preceding the date of the reinvestment of the proceeds by three working days at the latest, the amount of the refund shall be paid only by means of a cash transfer to a payment account held with a bank or branch of a foreign bank in its domestic currency (CZK), which is registered in the property account of the owner of the bonds in the Ministry's register, according to point 25 of these emission conditions.

18. The first period of return for the reinvestment of the proceeds shall be from 1.10.2020 (including that date) to 1.10.2021 (excluding that date). The following period of return shall be fixed as annual, from 1.10 (including that date) of the year concerned to 1.10. (excluding that date) of the year following that of 2021.

19. The Basic Index of Consumer Prices (cost of living) for the relevant basic (reference) period is published monthly on the website of the Czech Statistical Office according to the publication calendar, the relevant basic (reference) period used for its calculation in the relevant month is determined by the Czech Statistical Office. For the determination of the interest rate for the relevant yield period according to point 16 of these emission conditions, the aggregate basis indices of consumer prices (cost of living) for households in the Czech Republic shall be used. If the Basic Index of Consumer Prices (Cost of Living) for the month of July of the relevant year is not published by the Czech Statistical Office at all, or if it is published in the relevant year after 20.8.2008, the last known Basic Index of Consumer Prices (Cost of Living) published by the Czech Statistical Office and the relevant Basic Index of Consumer Prices (Cost of Living) of the month preceding the relevant month by 12 months shall be used to determine the interest rate for the relevant month, or is closest to this previous month.

20. The proceeds determined according to paragraphs 16 and 17 of these emission conditions shall always be received by the person who owns the bonds at the date of 1.9. starting in 2021. The proceeds of the reinvestment of the yield for the first yield period from the date of issue (including this date) to 1 October 2021 (excluding that date) shall be received by the person who owns the bonds at 1.9.2021.

21. The separation of the right of yield from the bond is excluded.

22. The issuer is entitled to write bonds when they are issued first to the issuer's property account in the Ministry's registry under the provisions of Section 15 (4) of the bond law and to acquire bonds before their due date, including the purchase 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. The issuer also reserves the right to pay bonds before the date of their maturity, including a proportional return, where, on the part of the issuer in relation to the bond holder, doubts arise as to the veracity of the data and information provided or other doubts as to whether the bond subscription is in accordance with the nature and requirements laid down by these terms of issue or does not circumvent them, in particular with regard to the range of persons authorised to acquire those bonds under point 4 of these terms of issue and other obligations of subscribers, respectively, including doubts as to the origin of the funds intended or used for payment of the bond subscription price, and at the same time these doubts will persist after application of the procedure under point 10 of those terms. In order to avoid doubt, it is established that doubts remain on the part of the issuer in particular where the owner concerned does not submit the required data, information or documents to the issuer in accordance with point 10 of these emission conditions. In the event that the issuer's doubts persist even after the application of the procedure under point 10 of these emission conditions, only in relation to part of the owner's bonds concerned, the issuer shall be entitled to repay only part of the owner's bonds before their due date. If less than 1 000 (in words: one thousand) bonds were to remain owned by the bond holder concerned as a result of this procedure, the issuer shall be entitled to repay all bonds owned by the owner concerned before their due date. The issuer's notice of repayment of bonds before the date of their maturity (hereinafter referred to as "the issuer's notification of early repayment ') shall be entitled to send to the address indicated in the subscription application or registered in the bond-holder's property account in the Ministry's registry and to do so via a distributor, the issuer or distributor being entitled to deliver to the bond-holder concerned the notification of early repayment to the issuer via the postal service provider. The decision of the issuer to repay the nominal value of all or part of the bond-holder concerned before their due date shall be effective at the time of receipt of the issuer's notification of early repayment to the bond-holder concerned; where the bond holder concerned withdraws receipt of the issuer's early repayment notification, the effects of service of that notice shall occur at the time of refusal of receipt. If the bond holder concerned is not affected when delivering the notification of the issuer of early repayment, the effects of the notification shall occur at the time when the service provider first attempted to service, provided that the document was then deposited in accordance with the applicable postal conditions and that the bond holder concerned has nevertheless not collected it within the specified period. If the issuer's notification of early repayment fails to deliver to the bond holder concerned because it is not delayed at the point of delivery, the effects of service shall occur at the time of return of the undelivered document to its consignor, i.e. the issuer or distributor. As from the date on which the notification of the issuer of early repayment was received / effect, the bonds in the number of items covered by the repayment of the bonds before their maturity cannot be transferred. To that end, the issuer reserves the right, from the time of dispatch of the issuer's notification of early repayment until the issuer has been proven to have received / received the issuer's notification of early repayment to the bond holder concerned, to block the number of bonds covered by the issuer's decision to repay the bonds before their due date. The issuer shall not subsequently carry out or record a bond transfer on the basis of a bond transfer order that has been delivered to the issuer on and / or after the date on which the issuer's early repayment notification was received / received. The number of units of bonds that are repaid by the issuer before their maturity date, including the date of early repayment of the bonds so paid up before their maturity date, shall be indicated by the issuer in the notification of the issuer of early repayment, the maturity not exceeding 30 (in words: 30) days. In order to determine and calculate the resulting amount, including the form of taxation, point 23 of these emission conditions shall apply mutatis mutandis, with the amount being repaid to the person who owns the bonds on the date of receipt / effect of the notification of the issuer of early repayment. The amounts corresponding to the nominal value of the owner's bonds and the corresponding pro rata income after tax collected by withholding at a special tax rate shall be paid to the holder of the bonds on redemption before their due date only by a cash transfer to a payment account held with the bank or branch of a foreign bank in domestic currency (CZK) in the domestic currency and registered in the ownership account of the bond holder in the Ministry's register. Bonds due before their due date shall cease at the same time as the owner's right of return. The total amount corresponding to the total nominal value of bonds repaid before their due date and the relevant yield or proportional return on the number of units of bonds repaid before their due date paid to the bondholder for the period from the date of commencement of the relevant yield period to the early repayment date shall be rounded up to a penny after tax levied on taxes at a special tax rate.

23. A bond owner may request the issuer in a way that allows remote access through the Ministry's website and under conditions identified and published by the issuer on the Ministry's website, where appropriate, also through a distributor to repay the nominal value of all or part of the bonds it holds of this bond issue before the specified maturity date, in accordance with the following terms and conditions, and according to the following timetable (hereinafter referred to as the "early repayment request"):

The relevant yield for the period from the date of commencement of the relevant yield period to the date of early repayment shall be paid after tax levied by withholding at a specific tax rate 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 may be submitted by the bond holder only during the periods for the submission of applications for early repayment determined by the issuer under this item of emission conditions. As from the time of the application for early repayment, bonds cannot be transferred in the number of units in which the application for early repayment was submitted. At one early repayment date, one bond holder may submit only one request for early repayment and, through it, apply for the repayment of its own bonds before a specified maturity date of at least 1 000 units (in words: one thousand). Where the number of shares in the owner's property account of the bond holder is less than 1 000 (in words: one thousand), the holder of the bond may apply for the repayment of its own bonds before the specified maturity date of less than 1 000 (in words: one thousand) if he requests the repayment of all shares in his own debt registered in the registry of the Ministry before the specified maturity date. At one early repayment date, one bond holder may apply for early repayment of 100% (in words: 100%) of its own bonds up to and including 500 000 (in words: five hundred thousand) and up to and including 50% (in words: fifty percent) of its own bonds over 500 000 (in words: five hundred thousand). Repayment bonds before the specified maturity date shall cease at the same time as the right of the bond holder to return. The amounts corresponding to the nominal value of the owner's bonds and the relevant income after tax collected by withholding at a special tax rate shall be paid to the holder of the bonds on repayment before the specified maturity date only by a cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) in the domestic currency and registered in the ownership account of the bond holder in the Ministry's register. If the date of early repayment is not the working day, such payments shall be made immediately on the following working day without entitlement to the return for such postponement. The change in the payment account shall be notified by the bond holder to the Ministry in a way that allows remote access through the Ministry's website and under conditions determined and published by the issuer, where appropriate, by a distributor, unless otherwise specified by the Ministry. The total amount corresponding to the total nominal value of bonds repaid before the specified maturity date and the relevant yield on the number of units of bonds in which the relevant application for early repayment was made, paid to the holder of the bonds for the period from the date of commencement of the relevant yield period to the date of early repayment, after tax, shall be collected by deduction at a specific rate of tax.

24. Bonds shall be repaid at nominal value at 1.10.2026, unless the bonds are repaid before the specified maturity date in accordance with point 22 or 23 of these emission terms or the bond-holder applies for the reinvestment of bonds in accordance with point 26 of these emission terms. This date concludes the interest on bonds. The nominal value of all the owner's bonds will be repaid together with the payment of the last yield to the person who owns the bonds at 1.9.2026. If the date of repayment of the nominal value of the bonds and the payment of the last yield is not a working day, such payments shall be made on the immediately following working day without entitlement to the return for such postponement.

25. The issuer undertakes to ensure the repayment of the nominal value of the bonds together with the payment of the last yield to the holders of the bonds under these 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 CSDs, a.s., the Czech National Bank and the Ministry are involved in ensuring the repayment of bonds and reinvestment and the payment of revenues. The issuer reserves the right to entrust another or other person at any time to be involved in ensuring the repayment of bonds and reinvestment and the payment of revenues. Notifications of any other delegates shall be published on the Ministry's website. This change shall not be caused by the holders of the bonds' injury and any such change shall take effect not later than 30 days before the date and not earlier than 30 days after the date of expiry of the relevant yield period or early repayment. The nominal value of the bonds will be repaid together with the payment of the last income after tax, collected by withholding at a special tax rate only by cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the ownership account of the bond-holder in the Ministry's register, unless the bond-holder applies for reinvestment of bonds under point 26 of these emission conditions. The change in the payment account shall be notified by the bond holder to the Ministry in a way that allows remote access through the Ministry's website and under conditions determined and published by the issuer on the Ministry's website, where appropriate, by a distributor, unless otherwise specified by the Ministry. The total amount of the last yield on all the bond holders' bonds paid to the bond holder shall be rounded to a penny after tax levied by withholding tax at a specific tax rate. The holder of a bond which is a tax resident of a Contracting State with which a double taxation contract is concluded shall be required to prove to the tax residence, in order to benefit from the benefits under this contract, by supporting a tax residence certificate issued by the foreign tax administrator responsible to the person involved in securing the repayment of the bonds and the payment of the proceeds under this item of the emission conditions. Notice of designation shall be published on the Ministry's website. If the holder of the bonds does not confirm the actual ownership of interest income on the property of the property or the tax residence in a Contracting State, i.e. in a Member State of the European Union and the European Economic Area or in a State or jurisdiction with which the Czech Republic has a valid and effective agreement containing provisions on the exchange of tax information, or if the holder of the bonds does not provide evidence showing that any additional conditions laid down in the relevant double taxation agreement have been fulfilled, the relevant tax rate levied by means of a special tax rate under the Income Tax Act will be applied to taxpayers who are not tax residents of the Contracting States.

26. If the Ministry decides to do so in good time before the due date, the bond owner shall be entitled to request the issuer to reinvest the bonds in a way that allows remote access via the Ministry's website, unless otherwise decided by the Ministry, to reinvest the last yield and the nominal value of all or part of the bonds that it owns. In such a case, the holder of the bonds shall not be paid their last return and the total nominal value, or the relevant part thereof, shall not be paid by means of a cash transfer to a payment account under point 25 of these emission conditions, but shall be reinvested at the required amount by the holder in the government bonds pre-determined by the Ministry. The application for a reinvestment of bonds cannot be reinvested in the nominal value of bonds encumbered by third parties' rights, in particular liens, or in the nominal value of bonds for which the suspension of the exercise of the owner's right to dispose is recorded in the Ministry's register. The notice of the period during which a request for reinvestment of bonds can be made and of sovereign bonds in which the latest return and nominal value of bonds can be reinvested shall be published in good time on the Ministry's website. A bond-holder may, through one request for a reinvestment of bonds, apply for a reinvestment of the nominal value of its shares in government bonds determined by the Ministry of Finance of at least 1 000 units (in words: one thousand) and for a reinvestment of the last yield only in its entirety. The total amount of the bond yield of the bond holder after tax collected by withholding at the special tax rate for the last yield period shall be rounded upwards for the purpose of reinvesting the last yield and the nominal value of the bonds. In the case of bondholders who have applied for the reinvestment of the last proceeds, the amount of the last proceeds after tax shall be reinvested by withholding at a specific tax rate at the date of the reinvestment of the bonds. For the purposes of taxation of income by the withholding tax rate for tax residents of the Czech Republic, it is necessary to prove to the tax payer residence for tax purposes in the Czech Republic, for example, a valid identity card or an honest declaration. As regards tax non-residents of the Czech Republic, for the purposes of applying the preferential tax rate resulting from the relevant international double taxation agreement or from the Income Tax Act, it is necessary to demonstrate to the tax residence by supporting the tax residence certificate issued by the competent foreign tax administrator of the Contracting State. A Contracting State shall mean a Member State of the European Union and the European Economic Area and a State with which a valid and effective agreement or agreement is concluded containing provisions on the exchange of information on tax matters. In addition, for the purposes of applying the relevant withholding tax rates, it is also necessary to provide evidence of an honest declaration of actual ownership of income and, where appropriate, to provide evidence of the fulfilment of any additional conditions laid down in the relevant double taxation agreement. If the above documents are not documented at the latest on the three working days preceding the date of the reinvestment of the bonds, the amount of the refund shall be paid only by means of a cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) in accordance with point 25 of these emission conditions.

27. Only one payment account for the purposes of payment of revenues, repayment of bonds before the specified maturity date and repayment of the nominal value of the bonds shall be registered in the property account of the bearer established by the Ministry in the register of the Ministry, for all sovereign debt of the owner registered in the register of the Ministry. All payments referred to in the first sentence of this item of the emission conditions shall be made to a payment account registered in the Ministry register two working days before the date of execution of the relevant payment.

28. 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 S & P Global Ratings is at AA level, Moody's at A3 level, Fitch Rating at AA- level, Japan Credit Rating Agency at AA level, R & I at AA- level, Scope Ratings at AA level, Dagong Global Credit Rating at A + level, ACRA Europe at AA level and ACRA at AA level.

29. 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.

30. 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.

31. 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.

32. The operating rules of the Ministry's records shall be published as amended on the Ministry's website and shall be binding on all holders of bonds and distributors and on all persons involved in securing the repayment of bonds and the payment of revenues.

33. The Ministry reserves the right to perform all acts related to the management of the Ministry's records, the subscription of bonds, the repayment of bonds before their due date, the reinvestment of the last yield and the nominal value of the bonds, the entries in the Ministry's records, changes in data and other related activities defined by the Ministry's operating rules.

34. The Czech National Bank does not supervise bond issues and their issuer.

35. If the prospectus is approved by the Czech National Bank, the prospectus is assessed by the Czech National Bank only for the completeness of the information contained therein, the Czech National Bank does not assess the economic results or financial situation of the issuer when it is approved, and the Czech National Bank does not guarantee the future profitability of the issuer or its ability to repay the proceeds and nominal value of the bond by approving the prospectus.

36. 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.

37. Bonds are issued according to Czech law and taxation of bond yield is carried out 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.