Announcement of Treasury bill auction
Invitation to tender
Norges Bank announces the issue of new zero coupon Norwegian Treasury bills, ISIN NO 001 0359458, NST 98. The bills will be sold by uniform price (Dutch) auction at 11 am on Monday 19 March 2007. The initial issue will be NOK 9 billion, of which NOK 3 billion is reserved for the Norwegian Government.
1. Issue terms
1.1 The nominal value of the issue for Securities Registry NO 001 0359458 is NOK 9 billion. 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 will be 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 maturity is 364 days. The loan is dated 21 March 2007 and has fixed maturity at par value on 19 March 2008.
1.3 Yield to maturity:
- 4.40% per annum at a price of 95.8000%
- 4.51% per annum at a price of 95.7000%
- 4.62% per annum at a price of 95.6000%
- 4.73% per annum at a price of 95.5000%
- 4.84% per annum at a price of 95.4000%
2. Method of sale
2.1 Bills for a nominal value of NOK 6 billion will be offered by uniform price (Dutch) auction.
2.2 Primary dealers shall submit tenders from 10.15-11 am on 19 March 2007, 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 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 21 March 2007, before 7 a.m.
4.2 Interest of 10.50% 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 bills at the tenderer’s expense and risk.
Oslo, 14 March 2007
Norges Bank Ministry of Finance