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Emission Conditions For Savings Coupon Treasury Bonds, 2012 - 2017

Original Language Title: emisní podmínky pro Kuponový spořicí státní dluhopis, 2012 - 2017

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375/2012 Coll.
COMMUNICATION

Ministry of Finance


Dated 1 November 2012

Which will determine the issue conditions for a savings coupon government bond
Czech Republic, 2012 - 2017 II, FIX%

The Ministry of Finance issues government bonds to the extent specified
special law, and determine their conditions of issue in accordance with
provisions of § 26 of Act no. 190/2004 Coll., On Bonds, as amended
, (hereinafter the "Act on bonds"). These emission
conditions define the rights and obligations of the issuer and bondholders
as well as information on the bond issue and coupon savings requirements
government bonds, Czech Republic, 2012 - 2017 II, FIX%.

First Basic description of bonds:

Issuer: Czech Republic - Ministry of Finance (hereinafter
"Ministry")

Name: Savings coupon government bond Czech Republic, 2012 - 2017
II, FIX%

Short name: SSD-K CR FIX% 17 II

Serial number of issue: 74th

Nominal value: CZK 1, - (in words: one Czech crown)

Issue Price: 100% (in words: one hundred percent) of the nominal value

Form of bond: bearer securities

Type of bond: book-entry security

Currency in which the bonds are denominated: Czech koruna (CZK)

Date of commencement of the period for subscription of the issue: 5. 11. 2012

Date of expiry of the deadline for subscription of the issue: 12. 12. 2016

Issue Date: 12. 12. 2012

Maturity date: 12. 12. 2017

Bond yield: fixed interest rate determined

For the first interest period from 12. 12. 2012 to 12. 12. 2013
1.00% pa

Income for the second period from 12. 12. 2013 to 12. 12. 2014
2.00% pa

Income for the third period from 12. 12. 2014 to 12. 12. 2015
of 3.00% pa

Income for the fourth period from 12. 12. 2015 to 12. 12. 2016
amounting to 4.50% pa

For the fifth interest period from 12. 12. 2016 to 12. 12. 2017
amounting to 6.00% pa

ISIN: CZ0001003784

Second Bonds are issued within the meaning of § 25 par. 2 of the
Bonds issued on the basis of special laws on state bond program
that allow treasury bonds issuance.
Issuance of bonds provided by the Ministry.

Third Bonds are on bearer, issued in dematerialized form and
are recorded in a separate register, which leads according to § 35 paragraph
. Point 1. d) of the Act no. 218/2000 Coll., on budgetary rules and
amending certain related laws (budget rules), as amended
Ministry, (hereinafter 'the Ministry').

Fourth Bonds may only subscribe:

A) a natural person

B) association or hunting communities,

C) a trade union or employers' organization,

D) foundation or endowment fund

E) charitable company

F) registered church or religious society, union of churches or religious
company,

G) Professional association or professional organization

H) educational legal entity whose founder is not the ministry
county, municipality or municipalities within the meaning of § 124 par. 2 Act no. 561/2004
Coll., On preschool, primary, secondary, higher
vocational and other education (education Act), as amended,

I) Economic Chamber of the Czech Republic and Agricultural Chamber of the Czech Republic
established by Act no. 301/1992 Coll., On the Economic Chamber of the Czech
Republic and Agricultural Chamber of the Czech Republic, as amended
regulations | ||
J) public university established pursuant to Act no. 111/1998 Coll., On
universities and on changes and amendments to other laws (the Higher Education
), as amended,

K) public research institution established in accordance with law no. 341/2005 Coll.
On public research institutions, as amended,

L) Czech Television established by Act no. 483/1991 Coll., On Czech Television, as amended
, Czech Radio established by the Act no. 484/1991
Coll., On Czech Radio, as amended amended or Czech
news agency established by Act no. 517/1992 Coll., on the Czech press
office, as amended,

M) General Health Insurance Company of the Czech Republic established by Act no.
551/1991 Coll., On the General Health Insurance Company of the Czech Republic,

Amended, employment or insurance company established in
meaning of the Act no. 280/1992 Coll., On Departmental, Professional, Enterprise and
other health insurance companies, as amended,

N) local governments and higher local government units
Czech Republic or in the capital city of Prague,

O) Association of Towns and Municipalities of the Czech Republic, the Association of Local Authorities
Czech Republic and the Association of Regions of the Czech Republic,

P) unit owners in accordance with Law no. 72/1994 Coll.
Regulating some joint ownership relationships to buildings and some
ownership of flats and non-residential premises and supplementing certain laws
( Flat ownership Act), as amended, or

Q) foreign legal person with similar activities as any of the persons
referred to in subparagraphs b) to h)

(Hereinafter referred to as the "underwriter" or "underwriters").

Fifth The Ministry, as the issuer does not intend to apply for admission of the bonds to
trading on European regulated market or multilateral trading system
established in a Member State of the European Union.
Trading in bonds on the listed venues is excluded.

6th Estimated total nominal value of the bond issue is 5,000,000
000 CZK (in words: five billion Czech crowns). Bonds can be
in accordance with § 7 of the Act on Bonds issued in smaller or larger volume
emissions than the anticipated total nominal value of the bond issue
. The possible extent of the increase in volume of the bond issue is 50
000 million CZK (in words: fifty billion Czech crowns).

7th Issuance of bonds may be issued within the period for subscription
gradually (in tranches).

8th The Bonds will be offered for subscription by the issuer in the Czech Republic in the form
public offering. Activities linked to the underwriting of bonds provides
Ministry and the persons that perform such activities mandated (hereinafter
"the Distributors"). Distributors on the date of the determination of these emission
conditions, the Czech Savings Bank, Inc., Czechoslovak Commercial Bank, and.
S., J & T Banka, as and Komercni banka, as The bonds will be subscribed
also at selected branches Czech post
current list of distributors and various distribution points are to publish
Ministry's website.

9th Subscribers referred to in paragraph 4 of these Terms and Conditions are served
application for subscription of the tranche of bonds through a distributor.
One subscriber can subscribe through one subscription request
bonds in a quantity of at least 1,000 (one thousand).
Underwriters are required when applying for subscription of bonds distributor
credible way to certify that they belong among the persons referred to in Section 4
these Terms and Conditions. The subscription price of the bonds means the total
nominal value of the bonds underwritten by one underwriter
multiplied their issue price. The subscriber shall pay the subscription price
bonds within five working days of the expiration of the subscription period
respective tranche. Upon the payment of the subscription price of the bonds underwriter
for a reseller account with the application for subscription of bonds becomes binding and
underwriter can not cancel it. From the date of payment of the subscription price of the bonds into
date of issue of the relevant tranche of bonds is interest on this amount.
After the termination date of the subscription period of the tranche of bonds are no longer relevant tranche bonds
subscribe. In case of reaching or exceeding
anticipated total nominal value of the bond issue pursuant to paragraph 6
these Terms and Conditions, the Ministry may decide to cuts in the number of units subscribed
bonds by applications for subscription of bonds
submitted to the termination date of the subscription period relevant tranche bonds.
Unmet or partially saturated subscribers returns them
paid the subscription price of bonds that were not underwritten, without undue delay
wire transfer to the payment account from which they were
appropriate funds remitted to the account of the distributor or to
payment account specified in the application for subscription of bonds in case of payment of the subscription price
bond in cash.

10th The subscription period of the first tranche of bonds is terminated on the date of 30. 11.
2012 or on the date designated by the issuer, whichever date occurs earlier
.

11th The issuance of the bonds in any other tranches following

First tranche pursuant to paragraph 10 of these Terms and Conditions may decide
issuer and determine the date of the beginning and end dates of the subscription period
appropriate next tranche. Notification of any other tranches with
published on the Ministry's website.

12th The request for conversion of bonds shall be made through a distributor.
The bonds are transferred without cash settlement.
Transferability of the Bonds in accordance with § 26 par. 6 of the Act on Bonds limits.
Convert bonds is allowed only between persons referred to in Section 4
these Terms and Conditions. The person to whom the bonds are converted, the
obliged when applying for a transfer of bonds distributor
credible way to certify that one of the persons mentioned in paragraph 4
these Terms and Conditions. Transferability of bonds after the date 12. 11. 2017
excluded.

13th Bond yield is determined by a fixed interest rate, which
for each interest period is increasing by 1 point of these emission conditions
(hereinafter referred to as "yield" or "income"). Revenues are paid once
year, always to the date 12. 12. from 2013. The total amount
proceeds from the bonds of the owner of the bond issue paid
owner is rounded to the nearest penny. Should the redemption date
yield on a day which is not a working day, the redemption proceeds
done on the next working day with no claim to yield for the payment deferred
.

14th Proceeds will receive always the person who owns the bonds on the date of the 12th
11th from 2013. Revenue for the first interest period from the date of issue
to 12. 12. 2013 receives the person who owns the bonds on the date of the 12th
11th 2013

15th The calculation of relative yield made on the basis of the actual number of calendar days in
year and the actual number of days in the relevant yield
period (standard ACT / ACT). Earning period is understood
relevant interest period in accordance with point 1 of these conditions of issue.
Proportionate yield is the price of the bond is counted from the date of issuance and shall be calculated as revenue
share multiplied by the actual number of days from the date of commencement of such
yield period until the date of calculation of relative yield and the actual number of days
relevant Interest Period . The total amount of relative yield of all bonds
owner of this bond issue for the purpose of calculating the relative yield
rounded to the nearest penny.

16th Detachment of the right to bond yield since the bond is eliminated.

17th Taxation of bond yields is done according to applicable laws and regulations
Czech Republic. For interest income from bonds issued
before effectuation of Art. III, section 6 of the Act no. 192/2012 Coll.
to apply the provisions of § 36 par. 3 of Law no. 586/1992 Coll., on income
income, as in force prior to the effective date of Art. III, section 6
Act no. 192/2012 Coll .

18th The Ministry, as the issuer is not entitled to prematurely redeem the bonds issued
before the maturity date, if requests for early redemption of bonds
owner in accordance with point 19 of these Terms and Conditions.
The Ministry is authorized to acquire its assets in bonds within the meaning of §
15 par. 4 Act on Bonds. Own bonds acquired by the issuer
before their maturity date shall not cease unless the issuer decides otherwise.

19th Bond holder has the right to ask the Ministry as the issuer
through a distributor on early repayment of all or part of it
owned bonds in accordance with the following schedule:
------------------
-------------------------------------- Date Date Date first
possible last
early application potential for early repayment
application for early repayment


repayment ---------------------------------------------- ----------
second 9. 2013 28. 11. 2013 31. 12. 2013
second 12. 2013 27. 2. 2014 31. 3. 2014
third 3. 2014 29. 5. 2014 30. 6. 2014
second 6. 2014 28. 8. 2014 30. 9. 2014
first 9. 2014 27. 11. 2014 31. 12. 2014
first 12. 2014 26. 2. 2015 31. 3. 2015
second 3. 2015 28. 5. 2015 30. 6. 2015
first 6. 2015 28. 8. 2015 30. 9. 2015
first 9. 2015 27. 11. 2015 31. 12. 2015
first 12. 2015 26. 2. 2016 31. 3. 2016
first 3. 2016 27. 5. 2016 30. 6. 2016
first 6. 2016 30. 8. 2016 30. 9. 2016
first 9. 2016 29. 11. 2016 30. 12. 2016
first 12. 2016 27. 2. 2017 31. 3. 2017

First 3. 2017 30. 5. 2017 30. 6. 2017 ----------------------------------
----------------------

Bondholder is entitled to a pro rata income for the period from
date of commencement of the relevant Interest Period and the date of early redemption
. Proportionate earnings for the period from the date of commencement of such
yield period to the early redemption date and the nominal value of the relevant
bonds will be paid to the person who owns the bonds
always on the first business day following the date of the last relevant
possible applying for early repayment.
Request for early repayment, the owner of bonds through
distributor. From the time of filing for early repayment shall not
bonds in the number of pieces in which the request was made early repayment
, convert. One bond holder can one date
early repayment through a request for early repayment
request early redemption of owned bonds in quantity
least 1,000 (one thousand). One bond holder may
one date to the early repayment request early redemption of 100%
(in words: one hundred percent) of owned bonds in quantity
500,000 (five hundred thousand), including a maximum of 50% (fifty percent)
-owned bonds in excess of 500,000 pieces (in words: five hundred thousand
). Bonds early repayment expire simultaneously with the right
owner to return. The amount corresponding to the nominal value of the bonds
owner and the corresponding revenue will be proportional to the owner when
Prepayment paid by wire transfer to the payment account
which is conducted in the country in domestic currency and is the owner of the bonds shall state in
subscription, transfer or assignment of the bond. Any change
payment account shall notify the owner of the bonds through a distributor.
Total amount relative yield of quantity, which was filed
request for early repayment, the owner paid for the period from the date
commencement of the relevant Interest Period to the early redemption date, the
rounded to the nearest penny.

20th The bonds will be redeemed at their nominal value on the date 12. 12. 2017
except where the bond holder a request for early repayment under point 19
these Terms and Conditions or if the owner does not submit a request for reinvestment
nominal value of these bonds under paragraph 22 of these emission
conditions. This date ends interest bonds. Issuer in accordance with § 17 of Bonds Act
held that the right to repayment of the bonds, the person
who is entitled to exercise the rights attached to bonds to date
12. 11. 2017. The nominal value of the bonds will be repaid by the owner along with
payment revenue last person who owns the bonds to date
12. 11. 2017. Should the date of redemption of the nominal value of bonds and payment
latest ruling on the day,
is not a working day, they will be made on the next working day with no claim to
payment yield for the payment deferred.

21st The Issuer undertakes to ensure that the distribution of income and repayment
nominal value of bonds by their owners these emission
conditions. To ensure the repayment of bonds and redemption proceeds will participate
Czech National Bank and the Ministry. The contract, which was negotiated
ensure redemption and payment of income
is accessible on request from the issuer. Revenues are paid by bank transfer
payment account, which is held in the country in domestic currency and is
bond holder shall state in the subscription, transfer or transition
bonds. In the same way also paid
nominal value of bonds, except where the bond holder a request for reinvestment
nominal value of the bonds in accordance with point 22 of these Terms and Conditions.
Any change in payment account shall notify the owner of the bonds through the Ministry
distributor.

22nd The owner of the bonds shall be entitled to request the Ministry as the issuer
through a distributor for reinvestment nominal value of all or part
-owned bonds of the bond issue. In this case
will be owners of bonds of total nominal value or
relevant part paid by bank transfer payment account by
point 21 of these Terms and Conditions, but will the owner required

Reinvested in bonds predetermined issuer.
Announcement on the date from which it is possible to submit an application for reinvestment
nominal value of bonds and debt securities in which it is possible
nominal value of the bonds to reinvest, is published in advance
Ministry's website. The reinvestment
nominal value of all or part of owned bonds requested by the owner
bonds applying for reinvestment nominal value of bonds
through a distributor. The last date for submission of the reinvestment
nominal value of bonds is 11. 11. 2017.

23rd Validation of domestic currency (rating)
denominated long-term liabilities at the date of determination of these Terms and Conditions
conducted by Standard & Poor's is AA level, by Moody's at A1 level and
by Fitch Ratings at AA-.

24th The bonds are direct, unconditional and unsubordinated obligations of the Czech Republic
which are on a par with all other existing and future
direct, unconditional and unsubordinated obligations of the Czech Republic
.

25th All rights connected with bonds in accordance with § 42 of Bonds Act
lapse upon expiration of ten years from the date when
could be applied for the first time.

26th These terms and conditions announced by the Ministry in the Official Gazette.
Announcements for the public relating to these bonds shall be published on the website of the Ministry
.

27th Operating Procedure separate records kept by government bonds
Ministry is binding on all bondholders and distributors
and published on the Ministry's website.

28th The Ministry reserves the right to take all actions related
keeping records of the Ministry, through the subscription of bonds
early repayment of debt, reinvestment of the nominal value of the bonds, entries in the register
ministry data changes and other related activities defined Operating
Regulations separate records kept by government bonds
Ministry.

29th These issuance conditions may be translated into foreign languages. If
variance between various language versions of issuance conditions, decides
the Czech version.
Minister
:

Ing. Kalousek vr