INVITATION TO TENDER
Issue of new 4.25% Norwegian bond 2006/2017, for Securities Registry No. 001 0313356, NST 472, will be offered by uniform price (Dutch) auction on 15 May 2006. The initial issue will be for NOK 8.5 billion, of which NOK 2.5 billion is reserved for the Norwegian Government.
1. Issue terms
1.1 The nominal value of the issue for Securities Registry No. 001 0313356 is NOK 8.5 billion. The Government has the right to increase the size of the bond issue, or to reduce it by the amount of repurchased bonds. The bonds have a denomination of NOK 1000, and are registered in the Norwegian Central Securities Depository and listed on the Oslo Stock Exchange.
1.2 The maturity is 11 years. The loan is dated 19 May 2006. It falls due for payment in its entirety on 19 May 2017, at par value.
1.3 The nominal interest rate is 4.25% per annum payable in arrears, fixed for the term of the loan. The loan is interest-bearing from 19 May 2006. Interest payment date 19 May, first time 19 May 2007, last time 19 May 2017.
1.4 Redemption yield:
- 4.02% per annum at a price of 102.00%
- 4.08% per annum at a price of 101.50 %
- 4.14% per annum at a price of 101.00 %
- 4.19% per annum at a price of 100.50 %
- 4.25% per annum at a price of 100.00 %
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 on 15 May 2006, 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.
2.3 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/en/price-stability/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, Friday 19 May 2006, before 7 a.m.
4.2 Interest of 9.25% 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, 8 May 2006
Ministry of Finance
Norges Bank