"Czech Republic Treasury Bond, 2005 - 2015, 3.80 %"
The Ministry of Finance, in accordance with § 25 of Act No. 190/2004 Coll., on Bonds, § 1 of Act No. 122/2003 Coll., on State Bond Programme of settlement of state debt principals to mature in the years 2003 and 2004, § 1 of Act No. 5/2005 Coll., on State Bond Programme for the recovery of the Czech Consolidated Agency´s partial loss which resulted from taking over of non-bonit assets in the years 1991 to 2003, § 1 of Act No. 313/2004 Coll., on State Bond Programme of settlement of a part of Czech Republic 2004 State Budget Deficit, and on amendment of No. Act 353/2003 Coll., on consumption tax, in the wording of Act No. 479/2003 Coll.,determines issuance conditions of Czech Republic Treasury Bond, 2004-2015, 3.80 %
- Basic characteristics of bonds:
Issuer: Ministry of Finance on behalf of the Czech Republic
Name: Czech Republic Treasury Bond, 2005 - 2015, 3.80 %
Name in short: ČR, 3.80 %, 15
Serial number of issue: 44
Face value: CZK 10 000
Form of bond : bearer
Type of bond: book-entered
Date of issue: 11 April 2005
Date of maturity: 11 April 2015
Interest yield: coupon with fixed interest rate of 3.80 % p.a.
Taxation of interest yields: under legal regulations of the Czech Republic
ISIN: CZ 0001001143
Coupon No.1, separated ISIN: CZ0000700562
Coupon No.2, separated ISIN: CZ0000700570
Coupon No.3, separated ISIN: CZ0000700588
Coupon No.4, separated ISIN: CZ0000700596
Coupon No.5, separated ISIN: CZ0000700604
Coupon No.6, separated ISIN: CZ0000700612
Coupon No.7, separated ISIN: CZ0000700620
Coupon No.8, separated ISIN: CZ0000700638
Coupon No.9, separated ISIN: CZ0000700646
Coupon No.10, separated ISIN: CZ0000700653
Principle, separated ISIN: CZ0000700554
- Bonds are issued under § 1 of Act No. 122/2003 Coll., on State Bond Programme of settlement of state debt principals mature in the years 2003 and 2004, § 1 of Act No. 5/2005 Coll., on State Bond Programme of partial payment of Czech Consolidation Agency losses connected with taking over non-bonit assets in the years 1991 to 2003, § 1 of Act No. 313/2004 Coll., on State Bond Programme of settlement of a part of Czech Republic 2004 State Budget Deficit, and on amendment of No. Act 353/2003 Coll., on consumption tax, in the wording of Act No. 479/2003 Coll.
- Bonds are on bearer and are issued in book-entered form. The holder register is kept by the Prague Securities Centre.
- Bonds may be acquired by legal or natural entities with their seat or residence in the territory of the Czech Republic as well as in abroad. Repatriation of yields and of paid-up face value to abroad shall be carried out under legal regulations of the Czech Republic.
- Bonds have fixed interest rate of 3.80 % p.a. Interest yields shall be paid once a year, each time by 11 April of the respective year. In case the day of the payment of yield falls on a non-working day, the payment shall be carried out on the first consecutive working day with no claim to yield for the payment deferred as above.
- The decisive day for the payment of bond yield precedes by one month the day of maturity of bond yield. The ex-coupon date is the day following the decisive day, and it is fixed to be 12 March. The investor who is bond holder on 11 March shall receive the interest yield. The investor who is bond holder on 11 March 2006 shall receive the interest yield for the first year.
- Issuer shall submit proposal for registration of bonds in the primary market of the Prague Stock Exchange, a.s. Transferability of bonds in the Prague Securities Centre shall commence as of the day of crediting the respective bonds in the accounts of first holders. The last day, when transfers of securities in holder accounts in the Prague Securities Centre shall be carried out, shall be 11 March 2015.
- The calculation of the proportional part of interest shall be made on the basis of a year with 360 days and of 12 months per 30 days (BCK - standard 30E/360). The proportional part of interest yield shall be added to the price of the respective bond as of the date of issue.
- Bonds shall be issued per single tranches. Primary sale of 1. tranche shall be carried out in the form of american auction organized by the Czech National Bank for a group of direct participants on 6 April 2005. Other investors may participate in the auction through direct participants. The announcement on the auction and the list of direct participants shall be published in advance. Primary sale of subsequent tranches shall be carried out under the same conditions. The issuance period shall be terminated by the day of 11 March 2014.
- The total anticipated volume of the bond issue is CZK 54 000 000 000. The bonds may be issued in smaller or larger volume in accordance with §11 (1) of Act No. 190/2004 Coll., on Bonds, in the amount corresponding to the development and structure of the financing of the State Budget deficit. The volume of issue may be increased maximally to CZK 65 000 000 000.
- Validation of domestic currency long-term rating was carried out and published by Standard and Poor´s company at the level of A.
- Detachment of the right to bond yield under § 18 of Act No. 190/2004 Coll., on Bonds, cannot be applied.
- The Ministry of Finance declares that it owes to each bond holder the face value of the respective bond. The bonds shall be paid up in the face value by the day of 11 April 2015. Also, the reckoning of interest shall terminate on the same day. The face value of the bond along with the last interest yield shall be paid to the bond-holder investor on 11 March 2015. In case the day of the payment of principal falls on a non-working day, the payment shall be carried out on the first consecutive day with no claim to yield for the payment deferred as above.
- All rights connected with bonds and coupons issued in relation therewith shall become statute-barred with the expiration of ten years since the day when such rights could be applied for the first time (§ 42 of Act No. 190/2004 Coll., on Bonds).
- The Ministry of Finance pledges to ensure the payment of bond interest yields and to pay up the face value of bonds to the holders thereof in accordance with the present issuance conditions. The place of payment is the Czech National Bank. The place of payment shall publish the method by which the payment of the coupon and the settlement of the face value shall be carried out.
- The bonds are direct, unconditional and unsubordinated obligations of the Czech Republic that are of the same standard with all other existing and future direct, unconditional and unsubordinated obligations of the Czech Republic.
- Announcements for the public relating to these bonds shall be published in Hospodářské noviny or in another daily of similar orientation currently available in the Czech Republic.
- 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.
Mgr. Bohuslav Sobotka