Invitation to tender
Norges Bank announces the 14th increase of 5.00 per cent Norwegian government bond 2004/2015, ISIN NO0010226962, NST 471. Bonds with a nominal value of NOK 3 billion will be sold by uniform price (Dutch) auction on Monday 8 March 2010. Settlement is Thursday 11 March 2010.
1. Issue terms
1.1 The issue terms for NO 0010226962 are set out in the invitation to tender of 19 May 2004. The issue is open to both residents and non-residents, has a nominal interest rate of 5.00 % per annum, with annual interest payments on 15 May and fixed maturity at par value on 15 May 2015. The bonds have a denomination of NOK 1000, and are registered in the Central Securities Depository and listed on the Oslo Stock Exchange.
1.2 The loan amount outstanding is NOK 45,125 billion as of today’s date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 48,125 billion.
1.3 Yield to Maturity:
- 3.07 % per annum at a price of 109.10 %
- 3.13 % per annum at a price of 108.80 %
- 3.19 % per annum at a price of 108.50 %
- 3.25 % per annum at a price of 108.20 %
- 3.31 % per annum at a price of 107.90 %
2. Method of sale
2.1 Bonds for a nominal value of NOK 3 billion will be offered by uniform price (Dutch) auction.
Primary dealers shall submit tenders from 10.15-11 on 8 March 2010, pursuant to Rule 6.22 and Appendix D, Rules 2 and 3 of the Norex Member Rules. Others must submit their tenders through a primary dealer.
2.2 Tenders must be submitted only in lots of one million kroner, on the basis of face value. Bid prices must be stated to two decimal places. In addition to the price, the tenderer shall pay accrued interest of 4.109589041 per cent of the nominal value, as compensation for 5.00 % nominal interest in the period 15 May 2009 – 11 March 2010, i.e. 300 days out of 365. Norges Bank reserves the right to reject at its own discretion any tender or all tenders submitted.
3. Announcement
3.1 The result of the auction will be announced on the Oslo Stock Exchange, Reuters pages NOCL/NOCN and Norges Bank’s website
http://www.norges-bank.no/english/government_debt/
3.2 Primary dealers shall send the contract note to Norges Bank in accordance with the information on the auction board.
4. Settlement
4.1 Primary dealers shall enter the transaction in the VPS (Norwegian Registry of Securities) system on the auction date so that settlement takes place through VPO (the VPS settlement system). The bonds will be finally registered in VPS on settlement date, Thursday 11 March 2010, before 7 am.
4.2 Interest of 8.75% p.a. is payable on any overdue amount. Norges Bank may alternatively choose to cancel the whole or part of the allotment, or to sell the bonds at the tenderer’s expense and risk.
Oslo, 1 March 2010
Ministry of Finance
Norges Bank