Communication from the Ministry of Finance No. 84 / 2014 Coll.

Communication from the Ministry of Finance determining the emission conditions for the Czech State bond, 2014- 2027, VAR%

Valid
84
COMMUNICATION
Ministry of Finance
of 2 May 2014
determining the emission conditions for the Czech National Bond, 2014- 2027, VAR%
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- 2027, VAR% (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- 2027, VAR%
Short name: Czech Republic, VAR%, 27
Issuing serial number: 90.
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: 14.5.2014
Date of expiry of the deadline for subscription: 20.10.2027
Issuing date: 19.5.2014
Date of due date: 19.11.2027
Debt yield: determined by floating interest rate
Taxation of bond yield: according to Czech legislation
ISIN: CZ0001004105
2. The bonds are issued on the basis of special laws within the meaning of Section 25 (2) of the bond law.
3. Bonds are issued as book-entry securities and are registered at the date of issue 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 its registered office 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 Central Depository") and persons authorised to keep a central register of book-entry securities kept by a CSD. 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 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 associated with the bond on 20 October 2014 and on 19 April and 20 October from 2015 onwards and in the years following that of Annex 1 to these emission conditions. The right to payment of the bond yield for the period from the date of issue (including this date) to 19 November 2014 (excluding that date) shall be exercised by the person entitled to exercise the rights associated with the bond on 20 October 2014. Transferability of the bond is excluded after 20.10.2027.
6. The yield of the bond is determined by the floating interest rate fixed by the Ministry for each yield period on the day on which the average reference interest rate is fixed as the average reference interest rate minus the margin of 0,10% p.a. (per annum). The interest rate thus determined shall be published on the date of establishment of the average reference interest rate on the Ministry's website. The average reference interest rate shall be determined as the arithmetic average of the reference interest rates for five consecutive working days, as set out in Annex 2 to these emission conditions, where the last of that date shall be the day of setting the average reference interest rate according to point 7 of these emission conditions, to the extent of three decimal places; the reference rate thus determined shall be rounded to two decimal places. The reference interest rate for the purposes of these emission conditions is the value of 6M PRIBOR in relation to the relevant return period, which means the reference value of interest rates in percentage p.a. for the sale of the CZK deposit for a period of six months on the interbank deposit market, which is published on the Czech National Bank's website. The yield of bonds determined on the basis of the relevant floating interest rate shall be paid twice a year on 19 May and 19 November respectively. 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 date on which the average reference interest rate is determined for the purposes of these emission conditions in relation to the relevant yield period shall be the working day preceding the first day of the relevant yield period by two working days. For the purposes of the first yield period, the date of establishment of the average reference interest rate shall be the auction date of the first tranche of the bond issue. If the reference interest rate 6M PRIBOR is not published in any of the five working days referred to in Annex 2 to this Regulation, the reference interest rate shall be determined by the issuer as the arithmetic average, rounded to two decimal places, by listing the interest rate of sales of the CZK interbank deposit market for a period of six months obtained on such a day after 11.00 (in words: eleventh) hour of Prague time from at least five banks operating on the CZK interbank market at the choice of the issuer. If it is not possible to determine the relevant reference interest rate on such a day, the last known interest rate of 6M PRIBOR that is closest to that date shall be used for the purposes of determining the average reference interest rate and determining the yield of the bond for the relevant yield period.
8. For the avoidance of doubt, where the reference interest rate 6M PRIBOR ceases to be used on the interbank deposit market in general as a result of the transition of the Czech Republic to another legal currency, the interest rate that will normally be used on the interbank deposit market in the Czech Republic shall be used for the purposes of determining the average reference interest rate according to points 6 and 7 of these emission conditions. The change in the reference rate will be made in accordance with the relevant legislation in force on the date of the transition of the Czech Republic to another legal currency. The provisions of point 7 of these emission conditions shall apply mutatis mutandis to the reference interest rate established in accordance with this point.
9. The period of return shall be set at six months, from 19.5 (including that day) to 19.11 (excluding that day) of the year in question and from 19.11 (including that day) of the year in question until 19.5 (excluding that day) of the year following that in Annex 1 to these emission conditions. The first yield period for the payment of the proceeds shall be set from 19.5.2014 (including that date) to 19.11.2014 (excluding that date). The second yield period for the payment of the yield shall be fixed from 19.11.2014 (including that date) to 19.5.2015 (excluding that day). The calculation of the yield and the proportional yield of the bond over a period of less than one year shall be based on a one-year convention of 360 (in words: three hundred sixty) days and the actual number of past days in the period for which the yield or return of the bond is calculated (ACT / 360 standard). 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.
10. The issue of bonds will be issued gradually (in tranches) within the deadline for subscription.
11. The issue rate of the bond of the relevant tranche of the bond issue shall be determined by the auction rate.
12. Bonds are offered for subscription in the Czech Republic publicly and according to § 26 (4) of the bond law 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.
13. The primary sale of bonds in the first tranche of the bond issue will be carried out in the form of an American auction held on 14 May 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.
14. The expected total nominal value of the bond issue is CZK 80 000 000 000 (in words: CZK 80 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 40 000 000 000 (in words: CZK 40 billion).
15. The bonds will be repaid at nominal value at 19.11.2027. This date concludes the interest on bonds. The nominal value of the bonds will be repaid together with the payment of the last bond yield to the person who owns the bonds at 20 October 2027. 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.
16. 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.
17. 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 level, Moody's at A1 level and Fitch Ratings at AA- level.
18. 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.
19. 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.
20. 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.
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.
Minister:
Ing. Babiš v. r.

Příloha č. 1

Annex No 1
Overview of the yield periods and individual data related to the payment of the bond yield
Pořadí
výnosového
období		Den stanovení průměrné referenční úrokové sazbyVýnosové obdobíDen rozhodný pro vyplacení výnosu dluhopisuDatum výnosu dluhopisu
od*do**
1.14. 5. 201419. 5. 201419. 11. 201420. 10. 201419. 11. 2014
2.14.11. 201419.11. 201419. 5. 201519. 4. 201519. 5. 2015
3.15. 5. 201519. 5. 201519. 11. 201520. 10.201519. 11. 2015
4.16. 11. 2015 19.11. 201519. 5. 201619. 4. 201619. 5. 2016
5.17. 5. 201619. 5. 201619. 11. 201620. 10. 201619. 11. 2016
6.16.11. 201619. 11. 201619. 5. 201719. 4. 201719. 5. 2017
7.17. 5. 201719. 5. 201719. 11. 201720. 10. 201719. 11. 2017
8.15. 11. 201719.11. 201719. 5. 201819. 4. 201819. 5. 2018
9.17. 5. 201819. 5. 201819. 11. 201820. 10. 201819. 11. 2018
10.15.11. 201819.11. 201819. 5. 201919. 4. 201919. 5. 2019
11.1. 5. 201919. 5. 201919. 11. 201920. 10. 201919. 11. 2019
12.15.11. 201919.11. 201919. 5. 202019. 4. 202019. 5. 2020
13.15. 5. 202019. 5. 202019. 11. 202020. 10. 202019. 11. 2020
14.16.11. 202019.11. 202019. 5. 202119. 4. 202119. 5. 2021
15.17. 5. 202119. 5. 202119. 11. 202120. 10. 202119. 11. 2021
16.16.11. 202119.11. 202119. 5. 202219. 4. 202219. 5. 2022
17.17. 5. 202219. 5. 202219. 11. 202220. 10. 202219. 11. 2022
18.16.11. 202219.11. 202219. 5. 202319. 4. 202319. 5. 2023
19.17. 5. 202319. 5. 202319. 11. 202320.10. 202319. 11. 2023
20.15.11. 202319. 11. 202319. 5. 202419. 4. 202419. 5. 2024
21.16. 5. 202419. 5. 202419. 11. 202420. 10. 202419. 11. 2024
22.15. 11. 202419. 11. 202419. 5. 202519. 4. 202519. 5. 2025
23.15. 5. 202519. 5. 202519. 11. 202520.10. 202519.11. 2025
24.14.11. 202519. 11. 202519. 5. 202619. 4. 202619. 5. 2026
25.15. 5. 202619. 5. 202619. 11. 202620. 10. 202619. 11. 2026
26.16.11. 202619. 11. 202619. 5. 202719. 4. 202719. 5. 2027
27.17. 5. 202719. 5. 202719. 11. 202720. 10. 202719. 11. 2027
* including this day
* * this day except

Příloha č. 2

Annex No 2
Overview of publication data 6M PRIBOR for the calculation of the average reference interest rate
Pořadí výnosového
období		Den stanovení průměrné referenční úrokové sazbyData uveřejnění referenční úrokové
sazby 6M PRIBOR
1.14. 5. 20147. 5., 9. 5., 12. 5., 13. 5., 14. 5.
2.14. 11. 201410. 11., 11. 11., 12. 11., 13. 11., 14. 11.
3.15. 5. 201511. 5., 12. 5., 13. 5., 14. 5., 15. 5.
4.16. 11. 201510. 11., 11. 11., 12. 11., 13. 11., 16. 11.
5.17. 5. 201611. 5., 12. 5., 13. 5., 16. 5., 17. 5.
6.16. 11. 201610. 11., 11. 11., 14. 11., 15. 11., 16. 11.
7.17. 5. 201711. 5., 12. 5., 15. 5., 16. 5., 17. 5.
8.15. 11. 20179. 11., 10. 11., 13. 11., 14. 11., 15. 11.
9.17. 5. 201811. 5., 14. 5., 15. 5., 16. 5., 17. 5.
10.15. 11. 20189. 11., 12. 11., 13. 11., 14. 11., 15. 11.
11.16. 5. 201910. 5., 13. 5., 14. 5., 15. 5., 16. 5.
12.15. 11. 201911. 11., 12. 11., 13. 11., 14. 11., 15. 11.
13.15. 5. 202011. 5., 12. 5., 13. 5., 14. 5., 15. 5.
14.16. 11. 202010. 11., 11. 11., 12. 11., 13. 11., 16. 11.
15.17. 5. 202111. 5., 12. 5., 13. 5., 14. 5., 17. 5.
16.16. 11. 202110. 11., 11. 11., 12. 11., 15. 11., 16. 11.
17.17. 5. 202211. 5., 12. 5., 13. 5., 16. 5., 17. 5.
18.16. 11. 202210. 11., 11. 11., 14. 11., 15. 11., 16. 11.
19.17. 5. 202311. 5., 12. 5., 15. 5., 16. 5., 17. 5.
20.15. 11. 20239. 11., 10. 11., 13. 11., 14. 11., 15. 11.
21.16. 5. 202410. 5., 13. 5., 14. 5., 15. 5., 16. 5.
22.15. 11. 202411. 11., 12. 11., 13. 11., 14. 11., 15. 11.
23.15. 5. 20259. 5., 12. 5., 13. 5., 14. 5., 15. 5.
24.14. 11. 202510. 11., 11. 11., 12. 11., 13. 11., 14. 11.
25.15. 5. 202611. 5., 12. 5., 13. 5., 14. 5., 15. 5.
26.16. 11. 202610. 11., 11. 11., 12. 11., 13. 11., 16. 11.
27.17. 5. 202711. 5., 12. 5., 13. 5., 14. 5., 17. 5.

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Regulation Information

CitationCommunication from the Ministry of Finance No. 84 / 2014 Coll., determining the emission conditions for the Czech State bond, 2014- 2027, VAR%
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation15.05.2014
Effective from-
Effective until-
Status Valid
The regulation text is for informational purposes only.

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