Issuance Conditions of 63rd Issue of Treasury Bonds - T-Bond VAR %, 23 - CZ0001003123

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

Published

  • State Debt
  • T-Bonds

Issuance Conditions of 63rd Issue of Treasury Bonds
"Czech Republic Treasury Bond, 2011-2023, VAR %”
(from 18 February 2011)

 

The Ministry of Finance, in accordance with § 25 of Act No. 190/2004 Coll., on Bonds as amended (hereinafter only Bonds Act) determines issuance conditions of Czech Republic Treasury Bond, 2011-2023, VAR %:

  1. Basic characteristics of bonds:
    Issuer: Ministry of Finance on behalf of the Czech Republic
    Name: Czech Republic Treasury Bond, 2011-2023, VAR %
    Name in short: ČR,  VAR %, 23
    Serial number of issue: 63.
    Face value: CZK 10 000
    Form of bond: bearer
    Type of bond: book-entered
    Date of issue: 18 April 2011
    Date of maturity: 18 April 2023
    Interest yield: floating interest rate
    Taxation of interest yields: under legal regulations of the Czech Republic

    ISIN: CZ0001003123

  2. Bonds are issued in term of § 25, subsection 2 of Bonds Act, based on particular acts that allow treasury bonds issuance.

  3. Bonds are on bearer and are issued in book-entered form. The holder register is kept by the Central Depository Prague.

  4. Bonds may be acquired by legal or natural entities with their seat or residence in the territory of the Czech Republic as well as abroad. Repatriation of yields and of paid-up face value to abroad shall be carried out under legal regulations of the Czech Republic.

  5. Issuer submits a proposal for listing of bonds on Prague Stock Exchange and RM-System, and trading them on those markets.

  6. Each bond will bear interest at the floating interest rate. Reference rate is 12M PRIBOR valid for one interest period increased by a spread at 65 basis points. Interest yield shall be paid once a year, always on interest payment dates: 18th April of the respective year. In case that the day of payment falls on a non-working day, the payment shall be carried out on the next working day with no claim to yield for postponed payment.

  7. Interest rate for the first interest period will be determined on the auction day, for each successive period will be determined on the second working day ahead of the first day of the successive interest period. Interest rate will be published on the day of determination.

  8. The decisive day for the payment of bond interest yield foregoes by one month the interest payment day. The ex-coupon date is the day following the decisive day, and it is fixed on 19th March. The investor who is bondholder on 18th March  of each year will obtain interest yield.

  9. Transferability of bonds in Central Depository 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 Central Depository shall be carried out, shall be 18 March 2023.

  10. The calculation of the proportional part of interest shall be made on the basis of a year with 360 days and actual number of days in the period (day count convention act/360). The proportional part of interest yield shall be added to the price of the respective bond as of the date of issue.

  11. Bonds shall be issued per separate tranches. Primary sale of 1st tranche shall be carried out in the form of auction organized by the Czech National Bank for a group of Primary Dealers (direct participants) on 12 April 2011. 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 18 March 2023.

  12. The particular given-out orders to auction by Primary dealers are settled gradually according to their highest offered price. As long as the bids with a certain price exceeds the offered volume of bonds, that issuer wants to sell, the bids with those higher offered price are cut off and then only partially fulfiled. The bonds are sold at offered prices.

  13. The total anticipated volume of the bond issue is CZK 100 000 000 000. The Bonds can be issued for lesser or larger volume in accordance with § 11, on Bonds Act and in such a quantity that correspondents with development and structure of financing of State Budget Deficit.

  14. Validation of domestic currency long-term rating was carried out and published by Standard and Poor´s Company at the level of A+, Moody´s at the level A1 and FitchRatings at the level AA-.

  15. Detachment of the right to bond yield under § 18 on Bonds Act is not applied.

  16. 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 18 April 2023. The interest terminates as of that day. The face value of the bond along with the last interest yield shall be paid to the bond-holder investor on 18 March 2023. 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.

  17. All rights connected with bonds and coupons issued in relation with § 42 of Bonds Act shall become statute-barred with the expiration of ten years since the day when such rights could be applied for the first time.

  18. 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.

  19. 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.

  20. Announcements for the public relating to these bonds shall be published in the Collection of Law, on the website of Ministry of Finance and other means of remote access.

  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.

 

Minister:
Ing. Miroslav Kalousek