Communication from the Ministry of Finance No. 320 / 2020 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech State Eurobonds, 2020-2027, 0,00%
Valid
Communication
Text versions:
15.07.2020
320
COMMUNICATION
Ministry of Finance
of 13 July 2020
determining the emission conditions for the Czech State Eurobonds, 2020-2027, 0,00%
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 bondholders, as well as information on the issue of bonds and requirements of the State Eurobonds of the Czech Republic, 2020-2027, 0,00% (hereinafter referred to as "bond 'or" bonds').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: Czech Republic, 2020-2027, 0,00%
Short name: Czech Republic, 0,00%, 27
Issue serial number: 129.
Nominal value: EUR 1 000 (in words: EUR 1 thousand)
form of bond: book-entry bearer security
Type of bond: sovereign bond
Currency in which bonds are denominated: euro (EUR)
Start date of the deadline for subscription: 15.7.2020
Date of expiry of the deadline for subscription: 27.6.2027
Issuing date: 17.7.2020
Date of due date: 27.7.2027
Bond yield: 0,00% p.a.
Broken Days: ACT / ACT (ICMA)
ISIN: CZ0001006043
2. The bonds are issued under other laws within the meaning of Section 25 (2) of the bond law.
3. The bonds are issued as book-entry securities and, at the date of issue, they are registered 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. Transferability of bonds and the possibility to establish a lien on bonds shall be excluded after 27 June 2027.
6. The bond is in accordance with the provisions of Paragraph 6 (1) (e) of the Law on non-yield bonds. The separation of the bond yield right from the bond is excluded.
7. 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.
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 issue of bonds by entry into the issuer's property account pursuant to § 35 (7) of Act No. 218 / 2000 Coll., on budgetary rules and on the amendment of certain related laws (budgetary rules), as amended, the issue rate of the bond will 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 way 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 applicable Rules for primary sale of government bonds organised by the Czech National Bank (hereinafter referred to as "Auction Rules'), which shall be published on the website of the Czech National Bank and the Ministry, where appropriate by other procedures and rules contained in the contractual documentation between the issuer and selected auction participants, in the event of a discrepancy, the procedures and rules contained in the contract documentation. 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 by the auction held on 15 July 2020 by the Czech National Bank according to the auction rules, or according to the rules contained in the contract documentation. The issue and primary sale of bonds by further tranches of bond issues following the first tranche of bond issuance shall be decided by the issuer and shall determine the date and manner of the relevant auctions according to the auction 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 an increase in the total nominal value of bond issuance is EUR 2 000 000 000 (two billion euro).
13. The bonds will be repaid at nominal value on 27 July 2027. The bonds will be repaid to the person who owns the bonds on 27 June 2027. If the date of repayment of the bonds is not the working day, that payment 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 repayment of bonds to persons who are entitled to exercise the rights associated with the bond exclusively in euro at the date set by those emission conditions. The Czech National Bank and the Ministry are involved in securing the repayment of the bonds. The nominal value of the bonds will be repaid by a cash transfer according to the instructions of the persons authorised to exercise the rights associated with the bond at the date set by these emission conditions. The place of payment is the Czech National Bank, which will publish the way in which bond repayment will be made.
15. Valid assessment of the financial eligibility (rating) of long-term liabilities in foreign currencies 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 Credit 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.
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 bond issues and their issuer.
20. 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.
21. 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.
22. 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 of Finance:
JUDr. Schiller, Ph.D., v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 320 / 2020 Coll., determining the emission conditions for the Czech State Eurobonds, 2020-2027, 0,00% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 15.07.2020 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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