Communication from the Ministry of Finance No 374 / 2012 Coll.
Communication from the Ministry of Finance determining the emission conditions for Discounted savings bond of the Czech Republic, 2012 - 2014
Valid
Communication
Text versions:
14.11.2012
374
COMMUNICATION
Ministry of Finance
of 1 November 2012
determining the emission conditions for the Discounted savings bond of the Czech Republic, 2012 - 2014
The Ministry of Finance issues government bonds to the extent provided for by the Special Act and determines their emission conditions in accordance with the provisions of Section 26 of Act No. 190 / 2004 Coll., on Bonds, as amended, hereinafter referred to as the "Bonds Act '. These emission conditions define the rights and obligations of the issuer and bondholders as well as information on the issue of bonds and the necessity of Discounted sovereign savings bond of the Czech Republic, 2012-2014.
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance ("Ministry ')
Name: Discounted savings bond of the Czech Republic, 2012 - 2014
Short name: SSD-D CR, 14
Issuing serial number: 72.
Nominal value: CZK 1, - (in words: one crown Czech)
Emission rate: 97,00% (in words: ninety-seven percent) of nominal value
Form of the bond: bearer security
Debt form: book-entry security
Currency in which bonds are denominated: Czech crown (CZK)
Start date of the deadline for subscription: 5.11.2012
Date of expiry of the deadline for subscription: 12.6.2013
Issuing date: 12.12.2012
Date of due date: 12 June 2014
Debt yield: the difference between the nominal value of the bond and its issue rate
ISIN: CZ0001003768
2. The bonds are issued pursuant to the provisions of Section 25 (2) of the bond law on the basis of the special laws on the government bond programme, which allow the issue of government bonds. The issue of bonds is guaranteed by the Ministry.
3. The bonds belong to the bearer, are issued in a book-entry form and are recorded in a separate register, which he keeps pursuant to 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 can only be subscribed by:
(a) a natural person;
(b) a civil association or an affiliation society;
(c) trade union or employers' organisations;
(d) the Foundation or the Foundation;
(e) a community of general interest;
(f) registered church or religious society, church association or religious society,
(g) the State Chamber or Professional Organisation;
(h) a school legal person not established by the Ministry, Region, Municipality or Association of Municipality within the meaning of § 124 (2) of Act No. 561 / 2004 Coll., on Pre-school, Basic, Medium, Higher Vocational and Other Education (Education Act), as amended,
i) Economic Chamber of the Czech Republic or Agrarian Chamber of the Czech Republic established by Act No. 301 / 1992 Coll., on the Economic Chamber of the Czech Republic and the Agrarian Chamber of the Czech Republic, as amended,
j) a public university established within the meaning of Act No. 111 / 1998 Coll., on higher education institutions and amending and supplementing other laws (Act on higher education), as amended,
(k) a public research institution established under Act No. 341 / 2005 Coll., on Public Research Institutions, as amended,
l) Czech Television established by Act No. 483 / 1991 Coll., on Czech Television, as amended, Czech Radio established by Act No. 484 / 1991 Coll., on Czech Radio, as amended, or Czech Press Office established by Act No. 517 / 1992 Coll., on Czech Press Office, as amended,
m) General Health Insurance Company of the Czech Republic established by Act No. 551 / 1991 Coll., on General Health Insurance Company of the Czech Republic, as amended, or Employee Insurance Company established under Act No. 280 / 1992 Coll., on departmental, branch, corporate and other health insurance companies, as amended,
(n) the local authorities and the higher local authorities of the Czech Republic or the capital of Prague,
o) Association of Cities and Municipality of the Czech Republic, Association of Local Government of the Czech Republic or Association of Regions of the Czech Republic,
(p) the association of owners of units within the meaning of Act No. 72 / 1994 Coll., which regulates certain joint ownership relations with buildings and certain ownership relations with apartments and non-residential premises and complements certain laws (the Housing Act), as amended; or
(q) a foreign legal person having a similar activity to one of the persons referred to in points (b) to (h);
(also known as "subscriber 'or" subscriber').
5. As an issuer, the Ministry does not intend to apply for the admission of bonds to trading on a European regulated market or in a multilateral trading system located in a Member State of the European Union. The trading of bonds at those transfer points is excluded.
6. The total nominal value of the bond issue is CZK 10 000 000 000 (in words: CZK 10 billion). The bonds may be issued in less than or greater than the expected nominal value of the bond issue in accordance with the provisions of Section 7 of the bond law. The possible extent of the increase in the volume of bond issuance is CZK 50 000 000 000 (in words: CZK 50 billion).
7. Debt issues may be issued gradually within the subscription period (in tranches).
8. The bonds will be offered by the issuer for subscription in the Czech Republic in the form of a public offer. The activities related to the subscription of bonds are provided by the Ministry and the persons entrusted with such activities ("distributors' or" distributor ', as appropriate). Distributors at the date of determination of these emission conditions are Česká spořitelna, a.s., Czechoslovak Commercial Bank, a. s., J & T BANKA, a.s., and Komerční banka, a.s. Bonds will also be subscribed at selected branches of the Czech Post Office, s.p. The current list of distributors and individual distribution sites will be published on the Ministry's website.
9. The subscribers referred to in point 4 of these emission conditions shall submit an application for the subscription of bonds to the relevant tranche via a distributor. One subscriber may subscribe through one application for a bond subscription of at least 1 000 units (in words: one thousand). The subscribers shall, when applying for a bond subscription to the distributor, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions. The bond subscription price is the total nominal value of bonds subscribed by one subscriber multiplied by their issue rate. The price of the bond subscription shall be rounded to the nearest penny and, where the price of the bond subscription is paid in cash, to the whole crown. The subscriber is obliged to pay the price of the bond subscription within five working days of the end of the subscription period of the respective tranche. At the time of payment of the subscription price by the subscriber to the distributor's account, the subscription request becomes binding and cannot be cancelled by the subscriber. From the date of payment of the bond subscription price to the date of issue of the relevant bond tranche, this amount shall not be remunerated. After the date of the end of the subscription period of the respective bond tranche, the bonds of the respective tranche cannot be subscribed. In the event that the expected nominal value of the issue is reached or exceeded in accordance with point 6 of these emission conditions, the Ministry may decide to reduce the number of units of the subscribed bonds per application for subscription of bonds submitted by the date of completion of the subscription period of the respective tranche of the bonds. The unsatisfied or partially satisfied subscribers shall be reimbursed the price paid by them for the subscription of bonds which have not been subscribed, without undue delay, by a cash transfer to the payment account from which the funds were placed in the distributor's account or in the payment account indicated in the application for the subscription of bonds in the event of payment of the price of the subscription of bonds in cash.
10. The subscription period of the first tranche of the bonds shall end on 30.11.2012 or on a date to be determined by the issuer, whichever date is earlier.
11. The issuer may decide to issue bonds in any subsequent tranches following the first tranche in accordance with point 10 of these emission conditions and to determine the date of the start and end of the subscription period of the relevant subsequent tranche. Notice of any further tranches shall be published on the Ministry's website.
12. An application for the transfer of bonds shall be submitted via a distributor. Bonds are transferred without settlement. The transfer of bonds is limited in accordance with Section 26 (6) of the bond law. The transfer of bonds shall be permitted only between the persons referred to in point 4 of these emission conditions. The person to whom the bonds are transferred shall, when applying for the transfer of the bonds to the distributor, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions. Transferability of bonds is excluded after 12 May 2014.
13. The bond yield is determined by the difference between the nominal value of the bond and its lower issue rate. The right to the yield of the bond shall be exercised by the person entitled to exercise the rights attaching to the bond on 12 May 2014. The separation of the bond yield right from the bond is excluded. The calculation of the proportional yield shall be based on the actual number of calendar days per year and the actual number of days of the yield period (standard act / act). Income period means the period from the issue date to the maturity date of the bond. The proportional return shall be included in the price of the bond from the date of issue and shall be calculated as the return multiplied by the share of the actual number of days from the date of issue to the date of calculation of the proportional return and the actual number of days of the yield period. The total amount of the proportional return on all the bond holders' bonds of this bond issue shall be rounded to the nearest cent in order to calculate the proportional return.
14. Taxation of the bond yield is carried out according to the applicable legislation of the Czech Republic. For interest income on bonds issued before the date of entry into force of Article III (6) of Act No. 192 / 2012 Coll. the provisions of Section 36 (3) of Act No. 586 / 1992 Coll., on income taxes, as effective before the date of entry into force of Article III (6) of Act No. 192 / 2012 Coll.
15. The Ministry, as issuer, is not entitled to early repayment of the bonds issued before the due date unless it applies for early repayment of the bond owner under point 16 of these emission conditions. The Ministry is entitled to acquire bonds into its assets within the meaning of Article 15 (4) of the bond law. Own bonds acquired by the issuer before their maturity date shall not be extinguished unless the issuer decides otherwise.
16. A bond-holder shall have the right to apply to the Ministry as an issuer through a distributor for early repayment of all or part of the bonds it holds according to the following timetable:
| Datum prvního možného podání žádosti o předčasné splacení | Datum posledního možného podání žádosti o předčasné splacení | Datum předčasného splacení |
|---|---|---|
| 1. 10. 2013 | 31. 10. 2013 | 12. 12. 2013 |
| 2. 1. 2014 | 31. 1. 2014 | 12. 3. 2014 |
The bond holder shall be entitled to a pro rata return for the period from the issue date to the early repayment date. The proportional return for the period from the date of issue to the date of early repayment and the nominal value of the bonds multiplied by the emission rate shall be repaid to the person who holds the relevant bonds on the first working day following the relevant date of the last possible application for early repayment. An application for early repayment shall be submitted by the bond holder through a distributor. 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 apply for early repayment of at least 1 000 units (in words: 1 000) on one early repayment application. At one early repayment date, one bond owner may apply for an early repayment of 100% (in words: one hundred percent) 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). Bonds by early repayment shall cease at the same time as the owner's right to return. The amount corresponding to the nominal value of the owner's bonds multiplied by the emission rate and the proportional return shall be paid to the owner on early repayment by an uncash transfer to a payment account held in domestic currency by the holder of the bond, which shall be indicated on the subscription, transfer or transfer of the bond. Any change to the payment account shall be notified by the bond holder through the distributor. The total amount of the pro rata return on the number of units in which the application for early repayment has been submitted and the nominal values of these bonds multiplied by the emission rate shall be rounded to the nearest cent.
17. Bonds shall be repaid at nominal value as of 12 June 2014, unless the bond-holder applies for early repayment under point 16 of these emission conditions or if the owner submits a request for reinvestment of the nominal value of those bonds under point 19 of those emission conditions. The issuer, within the meaning of Article 17 of the bond law, has decided that the right to repayment of bonds is exercised by a person who is entitled to exercise the rights associated with bonds on 12 May 2014. The nominal value of the bonds will be repaid to the person who holds the bonds on 12 May 2014. If the date of repayment of the nominal value of the bonds is not a working day, the first following working day shall be carried out without entitlement to payment of the proceeds for such deferral.
18. The issuer undertakes to ensure that the nominal value of the bonds is repaid to its owners under these emission conditions. The Czech National Bank and the Ministry are involved in ensuring the repayment of the bond. The contract to ensure the repayment of the bond is available on request to the issuer. The nominal value of the bonds shall be repaid by means of an uncash transfer to a payment account held in domestic currency by the holder of the bonds, which shall be required to indicate at the time of the subscription, transfer or transfer of the bonds, unless the bond holder submits an application for early repayment in accordance with point 16 of these emission conditions or where the owner submits a request for reinvestment of the nominal value of those bonds in accordance with point 19 of those emission conditions. Any change to the payment account shall be reported by the bond holder to the Ministry through a distributor.
19. The bond owner shall be entitled to ask the Ministry, as an issuer, to reinvest, through a distributor, the nominal value of all or part of the bonds held by it, of this bond issue. In such a case, the holder of the bonds shall not be repaid by a cash transfer to the payment account in accordance with point 18 of these terms and conditions, but shall be reinvested in the issuer's pre-determined bonds in the amount requested by the holder. The notification of the date from which the application for reinvestment of the nominal value of the bonds can be submitted and of the bonds in which the nominal value of the bonds can be reinvested shall be published in good time on the Ministry's website. A reinvestment of the nominal value of all or part of all or part of the bonds held by it shall be requested by the bond holder by the submission of a request for reinvestment of the nominal value of the bonds through the distributor. The last day for the application for reinvestment of the nominal value of bonds is 11 May 2014.
20. The valid assessment of the financial capacity (rating) of the long-term Crown liabilities at the date of determination of these emission conditions by Standard & Poor's is at AA, Moody's at A1 and Fitch Ratings at AA-.
21. Bonds are direct, unconditional and unsubordinated liabilities of the Czech Republic which are at the same level as all other existing and future direct, unconditional and unsubordinated liabilities of the Czech Republic.
22. Any rights associated with bonds shall be limited to 10 years from the date on which they could be exercised for the first time, in accordance with Article 42 of the bond law.
23. These emission conditions are announced by the Ministry in the Collection of Laws. The notice to the public concerning these bonds shall be published on the Ministry's website.
24. The operating rules of the Ministry's separate government bond records are binding on all bond owners and distributors and are published on the Ministry's website.
25. The Ministry reserves the right to conduct all acts related to the management of the Ministry's records, the subscription of bonds, the early repayment of bonds, the reinvestment of the nominal value of bonds, the entries in the Ministry's records, changes in data and other related activities defined by the Ministry's Ministry's Operating Regulations on the separate registration of government bonds.
26. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version decides.
Minister:
Ing. Kalousek v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 374 / 2012 Coll., determining the emission conditions for Discounted savings bond of the Czech Republic, 2012 - 2014 |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 14.11.2012 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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