Communication from the Ministry of Finance No 454 / 2022 Coll.
Communication from the Ministry of Finance determining the common emission conditions for treasury bills denominated in a single European currency
Valid
Communication
Text versions:
28.12.2022
454
COMMUNICATION
Ministry of Finance
of 15 December 2022
determining common emission conditions for treasury bills denominated in a single European currency
The Ministry of Finance (hereinafter referred to as "the Ministry 'or" the issuer') determines these common emission conditions of the national treasury bills denominated in the single European currency (hereinafter referred to as "the bond 'or" bonds'). The bonds are issued by the Czech Republic acting through the Ministry on the basis of § 25 and 26 of Act No. 190 / 2004 Coll., on bonds, as amended, (hereinafter referred to as "the Act on Bonds'), § 35 of Act No. 218 / 2000 Coll., on budgetary rules and amending certain related laws (budgetary rules), as amended (hereinafter referred to as" the Budget Rules') and on the basis of Part One (General Provisions) Rules for the primary sale of government bonds organised by the Czech National Bank, as amended, published on the website of the Czech National Bank and the Ministry (hereinafter referred to as "Rules for primary sale '). In particular, the bonds are governed by these common emission conditions, the bond law, the budgetary rules, the rules for primary sales, the procedures and the rules contained in the contractual documentation between the issuer and the selected auction participants (hereinafter referred to as the" contractual documentation') and the time schedule for settlement of transactions which is part of the UNIVYC Settlement System rules.
1. Basic description of bonds:
Issuing: Czech Republic - Ministry of Finance
Name: National treasury voucher denominated in a single European currency
Nominal value: EUR 1 000 (in words: EUR 1 thousand)
Type of bond: sovereign bond
Currency in which bonds are denominated: euro (EUR)
Debt yield: determined as the difference between the nominal value and its emission rate
Broken Days: ACT / 360
2. The bonds are issued on the basis of budgetary rules within the meaning of Article 25 (2) (b) 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"). The Eurosystem has been granted eligibility for credit operations with effect from 16 March 2022 to the Central Depositary and its links with Euroclear Bank. The issuer shall request the CSD to enter bonds in the European Central Bank's eligible assets register. 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. The maturity of the bonds is within one year.
5. Bonds may be subscribed and acquired by legal and natural persons with their registered office or residence in the Czech Republic and abroad (hereinafter referred to as "subscribers' or" subscribers').
6. The transferability of bonds and the possibility of establishing a lien for bonds shall be governed by the terms and conditions set by the TIPS settlement timetable which is part of the UNIVYC settlement system rules.
7. The yield of the bond shall be determined as the difference between the nominal value of the bond and its issue rate. For the purposes of any calculation related to bonds issued on the basis of these common emission conditions, a fraction of one year convention-based days of 360 (in words: three hundred sixty) days and the actual number of past days in the period during which the relevant calculation is made (ACT / 360) 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 issuance of bonds by entering into the issuer's property account pursuant to Article 35 (7) of the budgetary rules, the bond issue rate shall 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 method 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 rules on primary sales and the procedures and rules contained in the contractual documentation, the procedures and rules contained in the contractual documentation being decisive in the event of a conflict. 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 will be carried out through an auction organised by the Czech National Bank according to the Rules for primary sale and according to the procedures and rules contained in the contractual documentation, in the event of a conflict the procedures and rules contained in the contractual documentation are decisive. The issuer shall decide on the issue and the primary sale of the relevant tranche of the bond issue and determine the date and manner of the relevant auction according to the Rules for Primary Sale. Notice of the auction concerned and the auction method shall be published at the latest on the day of the auction on the Ministry's website. The settlement point for primary sales shall be a CSD which, in agreement with the issuer, publishes the method and timing of the auction settlement.
12. The right to repayment of the nominal value of the bond shall be exercised by the person who is entitled to exercise the rights associated with the bond on the day before the maturity of the relevant issue. Transferability of bonds and the possibility of establishing a lien on bonds after that date shall be excluded.
13. The bonds will be repaid at nominal value at the maturity date of the respective issue. If the date of repayment of the bonds is not TARGET2 business day, payment shall be made on the immediately following business day without entitlement to the proceeds or other compensation for such deferral.
14. The issuer undertakes to ensure the repayment of the bonds to the owners on the specified maturity date, exclusively in euro. The Czech National Bank, the Ministry and the CSD are involved in ensuring the repayment of bonds, either directly or through other mandates. The nominal value of the bonds will be repaid by cash transfer. The payment venue shall be a CSD or any other person authorised by the issuer to publish the manner in which the repayment of the bonds will be made.
15. Bonds are direct, unconditional and unsubordinated debts of the Czech Republic which are at the same level as all other existing and future direct, unconditional and unsubordinated debts of the Czech Republic.
16. The law relating to bonds 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.
17. These common emission conditions are declared by the Ministry in the Collection of Laws, take effect on the date of publication and apply to bond issues issued after that date. The bond notices will be published in the Czech language on the Ministry's website in the part where the issuer publishes information on the government bonds issued by it.
18. The Czech National Bank does not supervise the issue of these bonds or their issuer.
19. These common emission conditions may be translated into foreign languages. If there is a conflict between different language versions of common emission conditions, the Czech version will be decisive.
20. Bonds are issued according to Czech law and taxation of bond yield is governed by Czech law in the Czech Republic. The rights and obligations of these common emission conditions and of bonds issued under them shall be governed and interpreted in accordance with Czech law, regardless of the provisions of the conflict standards.
Minister of Finance:
Ing. Stanjura v. r.
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Regulation Information
| Citation | Communication from the Ministry of Finance No. 454 / 2022 Coll., determining the common emission conditions for treasury bills denominated in the single European currency |
|---|---|
| Regulation Type | Communication |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.2022 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
Legal Areas:
Securities
Finance
The regulation text is for informational purposes only.
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