Invitation to tender
Norges Bank announces the 1st increase of 3.75 per cent Norwegian government bond 2010/2021, ISIN NO0010572878, NST 474. Bonds with a nominal value of NOK 3 billion will be sold by uniform price (Dutch) auction on Monday 28 June 2010. Settlement date is Thursday 1 July 2010.
1. Issue terms
1.1 The issue terms for NO 0010572878 are set out in the invitation to tender of 10 May 2010. The bond has a nominal interest rate of 3.75 % per annum, with annual interest payments on 25 May and fixed maturity at par value on 25 May 2021. The bonds have a denomination of NOK 1000, and are registered in the Central Securities Depository (VPS) and listed on the Oslo Stock Exchange.
1.2 The outstanding amount is NOK 10 billion as of today’s date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 13 billion.
1.3 Yield to Maturity:
- 3.31 % per annum at a price of 104.00 %
- 3.36 % per annum at a price of 103.50 %
- 3.42 % per annum at a price of 103.00 %
- 3.47 % per annum at a price of 102.50 %
- 3.53 % per annum at a price of 102.00 %
2. Method of sale
2.1 Bonds for a nominal value of NOK 3 billion will be offered by uniform price auction.
Primary dealers shall submit tenders from 10.15-11 am on 28 June 2010 in the trading system of the Oslo Stock Exchange. Others must submit their tenders through a primary dealer.
2.2 Tenders must be submitted only in lots of NOK 1 million, 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 0.380136986 per cent of the nominal value, as compensation for 3.75 % nominal interest in the period 25 May 2010 – 1 July 2010, i.e. 37 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 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 1 July 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 bonds at the tenderer’s expense and risk.
Oslo, 21 June 2010
Ministry of Finance
Norges Bank