Communication from the Ministry of Finance No 451 / 2004 Coll.
Communication from the Ministry of Finance determining the emission conditions of the Czech Debt, 2004 - 2007, 3.95%
Valid
Communication
Text versions:
30.07.2004
451
COMMUNICATION
Ministry of Finance
of 15 July 2004
determining the emission conditions of the Czech Debt, 2004 - 2007, 3,95%
The Ministry of Finance, in accordance with Section 25 of Act No. 190 / 2004 Coll., on Bonds, Section 1 of Act No. 122 / 2003 Coll., on the State Debt Scheme to cover the State Debt in 2003 and 2004, Section 1 of Act No. 220 / 2003 Coll., on the State Bond Scheme to cover expenses associated with the construction of the motorway D 47, Section 1 of Act No. 313 / 2004 Coll., on the State Debt Scheme to cover part of the budget deficit of the Czech Republic for 2004 and amending Act No. 353 / 2003 Coll., on Consumption Taxes, as amended by Act No. 479 / 2003 Coll., determines the issue conditions of the Czech Debt, 2004 - 2007, 3,95%:
1. Basic characteristics of bonds:
Issue: Czech Republic represented by Ministry of Finance
Name: Bonds of the Czech Republic, 2004 - 2007, 3.95%
Short name: Czech Republic, 3.95%, 07
Issuing serial number: 43
Nominal value: CZK 10 000
Form of the bond: bearer security
Debt form: book-entry security
Issuing date: 2 August 2004
Due date: 2 August 2007
Interest income: coupon at a fixed interest rate of 3,95% p.a.
Taxation of interest income: according to Czech legislation
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2. The bonds are issued pursuant to § 1 of Act No. 122 / 2003 Coll., on the State Debt Scheme to cover the principal of the State debt payable in 2003 and 2004, § 1 of Act No. 220 / 2003 Coll., on the State Debt Scheme to cover the expenses associated with the construction of the motorway D 47, § 1 of Act No. 313 / 2004 Coll., on the State Debt Scheme to cover part of the budget deficit of the Czech Republic for 2004 and on the amendment of Act No. 353 / 2003 Coll.
3. The bonds are referred to the bearer and are issued in a book form. Owners' records are kept by the Securities Centre.
4. Bonds may be acquired by legal and natural persons with their registered office or residence in the Czech Republic and abroad. Repatriation of income and paid-up nominal value abroad will be carried out according to Czech legislation.
5. The issuer shall submit a proposal for the registration of bonds in the main market of the Prague Stock Exchange, a. s. Transferability of bonds in the Securities Centre begins with the date of the deposit of bonds into the accounts of the first owners. The last day of the transfer of securities on the account of the holders of the securities centre shall be 2 July 2007.
6. Bonds shall be remunerated at a fixed interest rate of 3,95% p.a. Interest income shall be paid once a year, on 2 August of the year concerned. If the day of payment of the income per day of work is the day of work, the payment shall be made on the first following working day without entitlement to the income for such deferral.
7. The operative date for the payment of the bond yield shall be one month before the maturity date of the bond yield. The date of the ex- coupon is the day following the operative day and is set at 3 July. The interest income shall always be received by the investor who holds the bond on 2 July of each year. Interest income for the first year shall be received by the investor who holds the bond on 2 July 2005.
8. The calculation of the proportion of interest is based on one year of 360 days and 12 months after 30 days (BCK - standard 30E / 360). The proportion of interest income is included in the price of the bond from the issue date.
9. Bonds will be issued by individual parts (tranches). The primary sale of the 1st tranche will take the form of an auction organised by the Czech National Bank for a group of direct participants on 28 July 2004. Other investors may participate in the auction through direct participants. The auction notice and the list of direct participants will be published in advance. The primary sale of further tranches will be carried out under the same conditions. The emission period shall expire on 1 July 2006.
10. The total estimated volume of bond issuance is CZK 54 000 000 000. Bonds may be issued in smaller or larger volumes in accordance with § 11 (1) of Act No. 190 / 2004 Coll., on Bonds, to the extent that they correspond to the development and structure of the financing of the State Budget deficit. The volume of emissions can be increased to a maximum of CZK 60,000 000 000.
11. A valid assessment of the financial capacity (rating) of long-term Crown liabilities was made and published by Standard & Poor's at A + level.
12. The separation of the right to the yield of the bond pursuant to § 18 of Act No. 190 / 2004 Coll., on bonds, is not possible.
13. The Ministry of Finance declares that it owes each bond holder the nominal value of the bond. The bonds will be repaid in nominal value on 2 August 2007. This day also ends the interest on bonds. The nominal value of the bond together with the last interest income will be paid to the investor who holds the bond on 2 July 2007. If the repayment of principal is due on the day of work, the payment shall be made on the first following working day without entitlement to the proceeds for such deferral.
14. All rights associated with bonds and coupons issued to them shall be limited to 10 years from the date on which they could be exercised for the first time (Section 42 of Act No. 190 / 2004 Coll., on bonds).
15. The Ministry of Finance undertakes to ensure the payment of interest income on bonds and to repay the nominal value of bonds to their owners under these emission conditions. The paying place is Česká národní banka, a. s. The payment place will publish the way in which payment of the coupon and repayment of the nominal value will be made.
16. 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.
17. The announcement to the public concerning these bonds will be published in the Economic Newspapers or other similarly targeted daily newspapers, commonly available in the Czech Republic.
18. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version will be decisive.
Minister:
Sobotka v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 451 / 2004 Coll., determining the emission conditions of the Czech Debt, 2004 - 2007, 3.95% |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.07.2004 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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