Invitation to tender
Issue of new 3.75 per cent Norwegian government bond 2010/2021, ISIN NO 0010572878, NST 474, will be offered by uniform price (Dutch) auction on Wednesday 19 May 2010. The issued amount will be NOK 10 billion, of which NOK 4 billion is reserved for the Norwegian Government. Settlement date is Tuesday 25 May 2010.
1. Issue terms
1.1 The nominal value of the issue for ISIN NO 0010572878 is NOK 10 billion. The Government has the right to increase the size of the bond, or to reduce it by the amount of repurchased bonds. The bonds have a denomination of NOK 1000, are registered in VPS (Norwegian Central Securities Depository) and listed on the Oslo Stock Exchange.
1.2 The maturity is 11 years. The loan is dated 25 May 2010. It falls due for payment in its entirety on 25 May 2021, at par value.
1.3 The nominal interest rate is 3.75 per cent per annum payable in arrears, fixed for the term of the loan. Interest payment date is 25 May, first time 25 May 2011, last time 25 May 2021.
1.4 Redemption yield:
- 3.64% per annum at a price of 101.00%
- 3.69% per annum at a price of 100.50 %
- 3.75% per annum at a price of 100.00 %
- 3.81% per annum at a price of 99.50 %
- 3.86% per annum at a price of 99.00 %
2. Method of sale
2.1 Bonds for a nominal value of NOK 6 billion will be offered by uniform price auction.
2.2 Primary dealers shall submit tenders from 10.15-11 am on 19 May 2010 in the trading system of the Oslo Stock Exchange. Others must submit their tenders through a primary dealer.
2.3 Tenders must be submitted only in lots of one million kroner, on the basis of nominal value. Bid prices must be stated to two decimal places. 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 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, Tuesday 25 May 2010, before 7 am.
4.2 In the event of delayed payment, interest on arrears accrues at the rate for interest on delayed payment stipulated by the Ministry of Finance. This rate is currently 8.75% per annum. Norges Bank may alternatively choose to cancel the whole or part of the allotment, or to sell the bills at the tenderer’s expense and risk.
Oslo, 10 May 2010
Ministry of Finance
Norges Bank