Invitation to tender
Norges Bank announces an increase of zero coupon Norwegian Treasury bills in series ISIN NO 0010560196, NST 09. The bills will be sold by uniform price (Dutch) auction at 11 am on Monday 18 January 2010. Settlement date is Wednesday 20 January 2010. The issue will be NOK 3 billion.
1. Issue terms
1.1 The issue terms for NO 0010560196 are set out in an invitation to tender dated 9 December 2009. The loan is dated 16 December 2009 and has a fixed maturity at par value on 15 December 2010. The Government has the right to increase the size of the bill issue, or to reduce it by the amount of repurchased bills. The bills have a denomination of NOK 1000, and are registered in the Central Securities Depository (VPS) and listed on the Oslo Stock Exchange. The issue is open to both residents and non-residents.
1.2 The outstanding amount is NOK 12 billion as of today’s date. Following the increase, the Treasury bill series will consist of fungible bills with a nominal value of NOK 15 billion.
1.3 Yield to maturity:
- 1.92% per annum at a price of 98.3000%
- 2.15% per annum at a price of 98.1000%
- 2.38% per annum at a price of 97.9000%
- 2.62% per annum at a price of 97.7000%
- 2.85% per annum at a price of 97.5000%
2. Method of sale
2.1 Bills 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 18 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 four 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 NOCG/NOCI 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 bills will be finally registered in VPS on settlement date, Wednesday 20 January 2010, before 7 a.m.
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, 13 January 2010
Norges Bank
Ministry of Finance