Issuance Conditions Relating to T-bills

Dept 20 - Debt and Financial Assets Management Department
Dept 20 - Debt and Financial Assets Management Department

Published

  • State Debt
  • T-Bills

Issuer:Ministry of Finance on behalf of the Czech Republic Ministry, Letenská 15, Prague 1
Name:Treasury bill (hereinafter as "T-bill")
Face value:CZK 1 000 000

  1. T-bills are discounted treasury bonds on bearer, issued in book-entered form. The holder registry is kept by the Registration Centre of the Czech National Bank.
  2. T-bill maturity is maximally 12 months.
  3. Issue price is fixed by issuer in advance or on the basis of auction results.
  4. T-bill interest yield is set as a difference between the face value and issue price. The calculation of the yield is carried out on the basis of the year of 360 days and of the actual calendar number of days (act/360).
  5. T-bill interest yield is taxed in accordance with legal regulations of the Czech Republic.
  6. T-bills may be acquired by issuers and by legal as well as natural entities with their seat or residence in the territory of the Czech Republic as well as in abroad, who have their owner accounts opened in the Registration Centre of the Czech National Bank.
  7. T-bills are not quoted securities in the meaning of § 44, Act No. 256/2004 Coll., on enterprising in capital market, as amended, however, they are transferable in the time and under the conditions set down by the Rules of Short-Term Bond System (hereinafter as "SKD").
  8. Primary sale of T-bills is usually carried out in the form of auction organized by the Czech National Bank for a group of direct participants in T-bill auctions (hereinafter as "direct participants"). The body of direct participants is determined by the Ministry of Finance in co-operation with the Czech National Bank. The procedures and rules in primary sales of T-bills are regulated by the Rules of T-bill primary sales organized by the Czech National Bank.
  9. T-bills are sold on primary market exclusively to direct participants entitled to bidding T-bills on their own names. Other interested persons may only participate in the primary market indirectly through direct participants who shall include the bids of the indirect participants in their own bids.
  10. The T-bill issuance programme consists of repeat T-bill issues, each issue differing in its issue code and ISIN code. The conditions of the individual T-bill issues, especially the date of the issue, the date and term of maturity and the volume of the issue in nominal value are determined by the issuer who shall publish them on the day of issuance at the latest. In case of auction sale, the issuer further determines, in particular, the volume of the issue offered to auction in nominal value, maximum yield, date and method of the auction, and publishes this information on the day of auction at the latest. Also, the issuer publishes, not later than on the day of the issuance, the T-bill price at maturity. Each issue may be re-opened under the same conditions.
  11. Payments for T-bills purchased in primary market are made in accordance with the SKD Rules.
  12. Issuer carries out T-bill operations in secondary market.
  13. Issuer is entitled to reducing the nominal volume of an outstanding T-bill issue by cancelling the T-bills that are in the issuer´s owner account. Information on the reduction of the nominal volume of the issue shall be published in advance by the issuer.
  14. Issuer declares that he owes each T-bill holder the nominal value of T-bills by the maturity date thereof.
  15. The rights ensuing from T-bills shall become statute-barred by expiration of ten years since the maturity date (§ 42 of Act No 190/2004 Coll., on Bonds).
  16. Issuer pledges to pay up the nominal value of T-bills to holders on the designed maturity day. The place of payment shall be the Czech National Bank.
  17. The payment of the nominal value reduced by the interest yield tax shall be made in accordance with the SKD Rules. If the maturity day falls on a non-business day at the place of payment or on public holiday, the payment shall be made the next working day without any claim to interest or other compensation of deferred payment.
  18. The non-application or only partial application of deduction tax in compliance with international agreements and legal regulations of the Czech Republic shall be asked for in writing from the Czech National Bank as the issuer´s paying agent not later than on the day preceding the maturity date.
  19. T-bills are direct, non-conditional and non-subordinate obligations of the issuer, which are at the same level with all other existing and future direct, non-conditional and non-subordinate obligations of issuer.
  20. The rights and obligations ensuing from T-bills are governed by the legal regulations of the Czech Republic.
  21. These issuance conditions may be translated into foreign languages. In case of variance between various language versions of issuance conditions, the Czech version shall be decisive.
  22. Announcements relating to T-bills shall be published in Hospodářské noviny or in another daily of similar orientation currently available in the Czech Republic. Information on T-bills is also published through the systems of Reuters, Telerate, and on websites of the Ministry of Finance.
  23. Amendments and changes of these issuance conditions only refer to issues issued after the publication of these amendments and changes.
  24. These issuance conditions enter into effect as of the day of announcement and apply to the issues issued after that date.

Minister:
Mgr. Bohuslav Sobotka