Invitation to tender
Norges Bank announces the 12th increase of 4.25 per cent Norwegian government bond 2006/2017, ISIN NO 0010313356, NST 472. Bonds with a nominal value of NOK 6 billion will be sold by uniform price (Dutch) auction on Monday 23 January 2012. Settlement date is Thursday 26 January 2012.
1. Issue terms
1.1 The issue terms for NO 0010313356 are set out in the invitation to tender of 8 May 2006. The bond has a nominal interest rate of 4.25 % per annum, with annual interest payments on 19 May and fixed maturity at par value on 19 May 2017. 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 36.737 billion as of today’s date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 42.737 billion.
1.3 Yield to Maturity:
- 1.31 % per annum at a price of 115.00 %
- 1.35 % per annum at a price of 114.75 %
- 1.40 % per annum at a price of 114.50 %
- 1.44 % per annum at a price of 114.25 %
- 1.49 % per annum at a price of 114.00 %
2. Method of sale
2.1 Bonds for a nominal value of NOK 6 billion will be offered by uniform price auction.
Primary dealers shall submit tenders from 10.15-11 am on 23 January 2012 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 2.934246575 per cent of the nominal value, as compensation for 4.25 % nominal interest in the period 19 May 2011 – 26 January 2012, i.e. 252 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 26 January 2012, 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, 16 January 2012
Ministry of Finance
Norges Bank