Communication from the Ministry of Finance No. 38 / 2014 Coll.
Communication from the Ministry of Finance determining the emission conditions for the Czech State bond, 2014- 2018, 0.85%
Valid
38
COMMUNICATION
Ministry of Finance
of 6 March 2014
determining the emission conditions for the Czech State Bond, 2014- 2018, 0,85%
The Ministry of Finance (hereinafter referred to as "the Ministry ') issues registered 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 Act on Bonds'). These emission conditions define in more detail the rights and obligations of the issuer and the holders of bonds as well as information on the issue of bonds and formalities of the State bond of the Czech Republic, 2014- 2018, 0,85% (hereinafter referred to as "bond 'or" bonds').
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: National bond of the Czech Republic, 2014- 2018, 0,85%
Short name: Czech Republic, 0.85%, 18
Issuing serial number: 88.
Nominal value: 10,000 CZK (in words: 10,000 CZK)
Emission course: determined by auction
form of bond: book-entry bearer security
Type of bond: sovereign bond
Currency in which bonds are denominated: Czech crown (CZK)
Date of start of the deadline for subscription: 12.3.2014
Date of expiry of the deadline for subscription: 15.2.2018
Issuing date: 17.3.2014
Date of due date: 17 March 2018
Debt yield: determined at a fixed interest rate of 0,85% p.a.
Taxation of bond yield: according to Czech legislation
ISIN: CZ0001004246
Separate principal - ISIN: CZ0000702964
Coupon No 1 - ISIN: CZ0000702972
Coupon No 2 - ISIN: CZ0000702980
Coupon No 3 - ISIN: CZ0000702998
Coupon No 4 - ISIN: CZ0000703004
2. The bonds are issued on the basis of special laws within the meaning of Section 25 (2) of the bond law.
3. The bonds are issued as book-entry securities and are registered in the central register of book-entry securities, registered in accordance with Section 92 (2) of Act No. 256 / 2004 Coll., on capital market business, as amended, by the Central Depository of Securities, a.s., with the registered office of Rybná 14, 110 05 Praha 1, Czech Republic, registered by the Municipal Court in Prague, Section B, insert 4308, ID No: 25081489, (hereinafter referred to as "the CSD"), and persons authorised to keep a central register of book-entry securities kept by the CSD.
4. Bonds may be acquired by legal and natural persons with their registered office or residence in the Czech Republic and abroad (hereinafter referred to as "investor 'or" investors').
5. The right to payment of the bond yield shall be exercised by the person who is entitled to exercise the rights attaching to the bond as from 15 December 2015. In leap years, the person entitled to exercise the rights associated with the bond at 16.2 shall be entitled to pay the bond yield. The right to payment of the bond yield for the period from the date of issue (including this date) to 17.3.2015 (excluding that date) shall be exercised by the person entitled to exercise the rights attached to the bond on 15.2.2015. The transferability of the bond is excluded after 15 February 2018.
6. The bond yield is determined at a fixed interest rate of 0,85% p.a. The proceeds of bonds shall be paid once a year, on 17 March starting in 2015. 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 yield period shall be set at 12 months, from 17.3 (including that day) of the year concerned to 17.3 (excluding that day) of the following year. The first yield period for the payment of the bond yield shall be fixed from 17.3.2014 (including this date) to 17.3.2015 (excluding that date). The calculation of the yield and the proportional yield of the bond shall be based on the actual number of calendar days per year and the actual number of days in the relevant yield period (ACT / ACT ICMA). The proportional return on the bond shall be included in the price of the bond from the date of issue, or from the date of commencement of the relevant yield period, to the date of calculation of the proportional return of the bond.
8. The bond issue will be issued gradually (in tranches) within the subscription deadline.
9. The issue rate of the bond of the relevant bond issue tranche shall be determined by the auction rate.
10. Bonds are offered for subscription in the Czech Republic publicly, and according to Section 26 (4) of the bond law they are sold on the primary market via the Czech National Bank. The primary sale of bonds, the method and place of subscription of bonds, the method and deadline of the delivery of bonds to individual subscribers and the manner and place of payment of the issue rate of the subscription bond is governed by the applicable Rules for primary sale of government bonds organised by the Czech National Bank, which are published on the website of the Czech National Bank and the Ministry. Primary bond sales are carried out in the form of auctions. The auction place is Česká národní banka. Only the person designated by the issuer ("primary dealer ') or the issuer may participate in the auction. Other investors may only participate indirectly through primary dealers 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 made in the form of an American auction held on 12 March 2014 by the Czech National Bank. The issue and primary sale of bonds by further tranches of bond issuance following the first tranche of the bond issue shall be decided by the issuer and determine the date of the respective auctions. The auction notice shall be published in sufficient time before the auction date on the Ministry's website.
12. The expected total nominal value of the bond issue is CZK 50 000 000 000 (in words: CZK 50 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 scope for increasing the volume of bond issuance is CZK 30 000 000 000 (30 billion CZK).
13. The bonds will be repaid at nominal value on 17 March 2018. This date concludes the interest on bonds. The nominal value of the bonds shall be repaid together with the payment of the last yield of the bonds to the person who owns the bonds on 15 February 2018. If the date of repayment of the nominal value of the bonds and payment of the last bond yield is not a working day, such payments shall be made on the immediately following working day without entitlement to the return for such deferral.
14. The issuer undertakes to ensure, according to these emission conditions, payment of bond yields and repayment of the nominal value of bonds to persons who, at the date set by these emission conditions, are entitled to exercise the rights associated with the bond, 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. The nominal value of the bonds will be repaid and the bond yields will be paid by cash transfer, or cash, 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 is the Czech National Bank, which will publish the way in which the nominal value of bonds will be repaid and bond yields paid.
15. The valid assessment of the financial eligibility (rating) of long-term Crown liabilities at the date of the determination of these emission conditions by Standard & Poor's is at AA level, Moody's at A1 level and Fitch Ratings at AA- level.
16. Bonds are direct, unconditional and unsubordinated debts of the Czech Republic, which are at the same level with all other existing and future direct, unconditional and unsubordinated debts of the Czech Republic.
17. Any rights 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.
18. These emission conditions are announced by the Ministry in the Collection of Laws. Any notice to the bondholders and to the public regarding such bonds shall be published in the Czech language on the Ministry's website in the part in which the issuer publishes information on the government bonds issued by it.
19. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version is decisive.
Minister:
Ing. Babiš v. r.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Communication from the Ministry of Finance No. 38 / 2014 Coll., determining the emission conditions for the Czech State bond, 2014- 2018, 0.85% |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 17.03.2014 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0