Announcement of government bond auctions
INVITATION TO TENDER
17th increase of 5.50 per cent Norwegian government bond 1998/2009, ISIN NO 000 1004683, NST468. Dutch auction Tuesday 11 September 2007 of bonds with a nominal value of NOK 4 billion. Settlement is Friday 14 September 2007.
1. Issue terms
1.1 The issue terms for NO 000 1004683 are set out in the invitation to tender of 19 January 1998: the issue is open to both residents and on-residents, has a nominal interest rate of 5.50 % per annum, with annual interest payments on 15 May and fixed maturity at par value on 15 May 2009. The bonds have a denomination of NOK 1000, and are registered in the Central Securities Depository and listed on the Oslo Stock Exchange.
1.2 The loan amount outstanding is NOK 40.951 billion as of today’s date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 44.951 billion.
1.3 Nominal rate:
- 4.21 % per annum at a price of 102.00 %
- 4.52 % per annum at a price of 101.50 %
- 4.83 % per annum at a price of 101.00 %
- 5.15 % per annum at a price of 100.50 %
- 5.47 % per annum at a price of 100.00 %
2. Method of sale
2.1 Bonds for a nominal value of NOK 4 billion will be offered by uniform price (Dutch) auction.
Primary dealers shall submit tenders from 10.15-11 on 11 September 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.
2.2 Tenders must be submitted only in lots of one million kroner, 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 1.838356164 per cent of the nominal value, as compensation for 5.50 % nominal interest in the period 15 May 2007 – 14 September 2007, i.e. 122 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 (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 14 September 2007, before 7 a.m.
4.2 Interest of 11.5 % 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, 4 September 2007
Ministry of Finance Norges Bank