Invitation to tender
Norges Bank announces the 5th increase of 4.50 per cent Norwegian government bond 2008/2019, ISIN NO0010429913, NST 473. Bonds with a nominal value of NOK 3 billion will be sold by uniform price (Dutch) auction on Monday 25 January 2010. Settlement is Thursday 28 January 2010.
1. Issue terms
1.1 The issue terms for NO 0010429913 are set out in the invitation to tender of 13 May 2008. The issue is open to both residents and non-residents, has a nominal interest rate of 4.50 % per annum, with annual interest payments on 22 May and fixed maturity at par value on 22 May 2019. 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 20 billion as of today’s date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 23 billion.
1.3 Yield to Maturity:
- 3.96 % per annum at a price of 104.10 %
- 4.00 % per annum at a price of 103.80 %
- 4.04 % per annum at a price of 103.50 %
- 4.08 % per annum at a price of 103.20 %
- 4.12 % per annum at a price of 102.90 %
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 25 January 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 3,094520548 per cent of the nominal value, as compensation for 4.50 % nominal interest in the period 22 May 2009 – 28 January 2010, i.e. 251 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 28 January 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, 18 January 2010
Ministry of Finance
Norges Bank