Conditions For The State's Voucher Savings Bond, 2013-2018 (Ii)

Original Language Title: emisní podmínky pro Kuponový spořicí státní dluhopis, 2013-2018 II

Read the untranslated law here: https://portal.gov.cz/app/zakony/download?idBiblio=80982&nr=385~2F2013~20Sb.&ft=txt

Sb 385/2013.



The COMMUNICATION FROM the



The Ministry of finance



from day 4. November 2013



which determine the conditions for the State's voucher savings bond

The Czech Republic, 2013-2018 II FIX%



The Ministry of Finance (hereinafter referred to as "the Ministry") issued State bonds

to the extent provided for by a special law and determines their conditions

in accordance with the provisions of section 26 of Act No. 190/2004 Coll. on bonds, in

as amended, (hereinafter referred to as the "law on bonds"). These

conditions define the rights and obligations of the issuer and the owners

bonds, as well as information about the bond issue and requirements Kuponového

saving the State of the bond of the Czech Republic, 2013-2018 II FIX% (

also, the "bond", or the "bonds").



1. the basic description of the bonds:



Issuer: Czech Republic-Ministry of finance



Name: the State's voucher savings bond of the Czech Republic, 2013-2018 (II),

FIX%



Abbreviated name: SSD-to the CZECH REPUBLIC, FIX%, 18 (II)



Serial number of the emissions: 85.



Nominal value: 1 € (in words: one koruna Czech)



The emission rate for the date of the issue: 100% (in words: one hundred percent) of the nominal value



Form of a bond: a valuable paper bearer



Form of a bond: zaknihovaný paper



Type of bond: bond



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



The date of commencement of the period for subscription issue: 4.11. 2013



End date for the subscription period emissions: 12. 12.2017



Issue date: 12. 12.2013



Maturity date: 12. 12.2018



The yield of the bond: the specified fixed interest rate laid down for the

the first period

from the 12. 12.13 to 12. 12.2014

at a rate of 0.50% p. a.

the second period

from the 12. 12.2014 to 12. 12.2015

in the amount of 1.00% p. a.

the third period

from the 12. 12.2015 to 12. 12.2016

in the amount of 3.00% p. a.

the fourth period

from the 12. 12.2016 in 12. 12.2017

of 4.00% p. a.

Fifth period

from the 12. 12.2017 to 12. 12.2018

of 5.50% p. a.



Taxation of income of the bond: according to the legislation of the Czech Republic



ISIN: CZ0001004188



2. Bonds are within the meaning of the provisions of § 25 paragraph. 2 of the law on

bonds issued on the basis of special laws. Issue of bonds

the Ministry provides.



3. the following bearer Bonds issued in dematerialised form and

are recorded in a separate register, according to the provisions of § 35

paragraph. 1 (a). (d)) of law No 218/2000 Coll., on the budgetary rules and the

changes to some related acts (budgetary rules), as amended by

amended, the Ministry (hereinafter referred to as "the register of the Ministry").



4. Bonds may subscribe only:



and) means a natural person,



(b)) Civic Association of natural persons or the shooting of the Fellowship,



(c) a trade union or organization) employers



(d)) of the Foundation or Endowment Fund,



e) public benefit corporation,



f) professional Chamber or professional organisations,



(g)), the Board of the legal person, whose founder is the Ministry,

County, municipality or municipalities within the meaning of section 124, paragraph. 2 Act No. 561/2004

Coll. on pre-school, primary, secondary, higher vocational and other

Education (the Education Act), as amended,



(h)), Economic Chamber of the Czech Republic or the agrarian Chamber of the Czech

the Republic established by Act No 301/1992 Coll., on the Czech Economic Chamber

Republic and agrarian Chamber of the Czech Republic, as amended

regulations,



I) public high school established in accordance with Act No. 111/1998 Coll., on

universities and amending and supplementing other laws (the law on high

schools), in the wording of later regulations,



j) public research institution established in accordance with Act No. 341/2005 Coll.

public research institutions, as amended by later regulations,



for the Czech television, established by law) no 483/1991 Coll., on the Czech television, in

as amended, Czech Radio, established by Act No. 484/1991

Coll., on the Czech Radio, as amended, or Czech

Press Office, established by law No. 517/1992 Coll., on the Czech press

the Office, in the wording of later regulations,



l General health insurance company) of the Czech Republic established by law No.

551/1991 Coll., on general health insurance company in the Czech Republic, in the

as amended, or departmental, departmental, corporate and other

health insurance company established pursuant to Act No. 280/1992 Coll., on the

departmental, industry, corporate, and other health insurance companies,

in the wording of later regulations,



m) territorial self-governing units and higher territorial self-governing units, Czech

Republic or the capital city of Prague,



n) voluntary townships established by Act No. 128/2000 Coll., on the

municipalities (municipal establishment), as amended,



the Union of towns and municipalities), the Czech Republic, Association of local authorities of the Czech

Republic or the Association of regions of the Czech Republic,



p) community of owners of units within the meaning of Act No. 72/1994 Coll.

adjusting some of the co-ownership to the buildings and some

ownership of the flats and non-residential spaces and added some

laws (the law on the ownership of flats), as amended, or



q) foreign legal person with similar activities as one of the persons

referred to in points (b) to (f))),



(hereinafter also referred to as "underwriter" or the "Underwriters").



5. The Ministry does not intend to apply for admission of the bonds to trading on the

the European regulated market or in a multilateral trading system,

established in a Member State of the European Union. Bond trading on the

referred to the transfer points is out of the question.



6. The estimated total nominal value of the bond issue is 500 000

USD (in words: five hundred million Czech Crowns). Bonds may be in

accordance with the provisions of section 7 of the Act on the bonds issued in smaller or in

the larger the volume of emissions, it was estimated the total nominal value

the bond issue. The possible range of magnification of the volume of the bond issue is 50

0000 0000 0000 € (in words: fifty billion Czech Crowns).



7. the issue of bonds may be issued within the time limits for the emission of subscription

increments (tranches).



8. the bonds offered for subscription in the Czech Republic. The activities of the

associated with the subscription of bonds, the Ministry provides, and the persons that

for the performance of the selected actions, the Ministry instructed, (hereinafter referred to as

"distributors" or "distributor"). To date the beginning of distributors

the deadline for subscription to the emissions are Česká spořitelna, a.s., Československá

Commercial Bank, a. s., J T & BANKA, a.s., Komerční banka, a.s.

The bonds will be called upon to subscribe also to selected branches of Česká Pošta, s.p.

The current list of distributors, and ways of distribution points

organizational and technical assurance subscription of bonds shall be published on the

the website of the Ministry.



9. The underwriters mentioned in point 4, the following emission conditions served

application for subscription of bonds of the relevant tranche bond issue

through a Distributor, and under the conditions specified and published

the issuer also through the Ministry (hereinafter referred to as "subscription request").

One underwriter may subscribe through a subscription request

bonds in a number of pieces of at least 1000 (in words: one thousand). One

an underwriter may submit a request/application for a subscription when the subscription of bonds each of

tranche bond issue according to points 12 and 13 of these emission conditions in

the total number of pieces not exceeding 50 0000 0000 (in words: fifty million) for

each tranche of the bond issue. Underwriters are required to

request a subscription to the Distributor or the Ministry of trusted

way to certify that they belong among the persons referred to in point 4 of these

the emission conditions, and show their permission to act on behalf of the following persons

or for such persons. The price of the subscription of the relevant tranche of bonds issue

the bond means the total nominal value of bonds upisovaných

one by one the Subscriber requests for bond multiplied by the

their emission rate (hereinafter referred to as "the price of the subscription of bonds"). An underwriter is a

obliged to pay the price of the subscription of bonds within five working days from the date of

the end of the subscription period of the relevant tranche bond issue, unless

the Ministry no later than the start date of the subscription period, the competent

tranche bond issue otherwise. The moment of payment of the price of the subscription of bonds

means of crediting of funds on a payment account distributor

or the Ministry and this moment with a request to subscribe to

Underwriters binding and an underwriter it cannot cancel. In the case of

submission/subscription requests directly to the Ministry, it is possible to pay the price

subscription of the bonds only non-cash transfer on a payment account

of the Ministry. From the moment of payment of the price of the subscription of the bonds to the date of issue

the relevant tranche bond issue is not this amount shall bear interest. After

published by the end of the subscription period of the relevant tranche of the issue

bonds bonds cannot be the relevant tranche bond issue to underwrite,

If the Ministry does not specify otherwise.



10. The underwriters request for bond's signature binding, affirm that the purpose and

the intended nature of (reason) subscription of bonds including the beneficial owner

bonds is in accordance with the nature and requirements laid down by these
conditions and these conditions do not circumvent. The underwriters

by signing the application for subscription on binding, affirm that all the information and

the information stated in the context of applications for subscription, are complete and

true. In particular, data and information relating to the legal

the status and the identification of the persons referred to in the request directly to the underwriters of the

subscribe, such data and information provided by the underwriter

the Distributor or the Ministry under the identification/registration

forms or the conclusion of related contracts, which are in any way

refer to the subscription of bonds. In cases of application/subscription requests

bonds in the total number of pieces of more than 30 0000 0000 (in words: thirty

million), then it is, in particular, the data and information relating to the

the origin of the funds, of which the price is paid for by subscription of bonds,

including the identification of resources and the range of income or other assets

Underwriters, and indirectly, through which the payment of the subscription price has occurred

bonds. In cases of subscription bonds in the total number of pieces in the amount of

According to the previous sentence is always an underwriter must indicate the required information and

information regarding the origin of the financial resources intended to cover prices

subscription of bonds including the identification of the intended purpose of subscription bonds,

through the presentation and the signature of the relevant statutory

the Declaration; If an underwriter submits multiple applications for subscription, number of pieces

upisovaných bonds are added together. Such an underwriter submits

the Ministry of the affidavit, together with a request for subscription, which will

exceeding the total number of bonds, i.e.. 30 0000 0000

(in words: thirty million), with an underwriter is obliged to indicate in this

solemn declaration data and information that are related to the also

previous requests for subscription. Good faith regarding the fulfilment of underwriters

all terms and conditions and the related requirements for subscription of bonds according to the

These emission conditions must take on the part of the Subscriber from the moment

request a subscription to the subscribed bonds by the issuer.

Good faith on the part of the Subscriber must take and then, what happens

the owner of the subscribed bonds. In the case of a transfer or gradient bonds

must include good faith on the part of the transferee of the bonds, so the new

the owner of the bonds, in addition to good faith regarding the completeness and veracity

data and information on the nature and identification of your person, also the fact

that the transfer or gradient of the bonds is in accordance with the nature and requirements of the

laid down in these conditions. The Issuer reserves the right to

Verify the existence and duration of good faith on the part of the Subscriber, respectively.

Subsequently, on the part of the owner of the bonds, and that from the moment of submission of the application

about the subscription until the time of repayment of the bonds by the issuer. In the case of

doubts about the good faith of the other underwriters, or subsequently on

side of the owner of the bonds, the issuer is entitled to demand proof

good faith on the part of the Subscriber in the form of additional

data, information and documents relating in particular to the nature and

the identification of the person, the intended purpose of the bond underwriters of bonds and

the source of funds used to pay the price or subscription

bonds. The underwriter, or the owner of the bonds is

bound to the data, information and documents to submit directly to

the Ministry.



11. in the case of exceeding the forecast total nominal value of the issue

bonds according to item 6 of these conditions of issue, the issuer may, during the period from

the start date of the subscription period to the date of issue of the relevant tranche of the issue

bonds according to points 12 and 13 of these emission conditions, decide on the

a proportional reduction in the number of units of the relevant tranche of bonds upisovaných

bond issue to each Subscriber; the result of the proportional reduction in

individual subscriber shall be rounded to the whole of the Crown downwards.

Reduction of upisovaných bonds takes place so that the first are relatively

shortened applications for subscription for one Subscriber in aggregate

exceed the total number of pieces of 10 0000 0000 (in words: ten million), while

the reduction applies only to the bonds in a number of pieces exceeding this total

the number of pieces. In the event that such reduction leads to the achievement of the maximum

the forecast total nominal value of the bond issue, the application for subscription

each of the underwriters to the total number of pieces in the amount of 10 0000 0000

(in words: ten million) has already been shortened not any subscribers. If

in this way, the reduction is not achieved a maximum estimated total

the nominal value of the bond issue, then in the second round

reduction of the proportional reduction bond underwriters without upisovaných all

regardless of the total number of pieces of the upisovaných bonds of one Subscriber.

The issuer further reserves the right to refuse an individual's request for a completely

the bond in the event that the issuer, doubts remain about the good

faith on the part of the Subscriber. In particular, doubts as to the

the veracity of the provided data and information, doubts about whether it is

subscription of the bonds in accordance with the nature and requirements laid down by these

conditions and even these do not circumvent, especially with regard to the

the circle of persons entitled to acquire these bonds according to item 4 of these

issue conditions and other obligations of the underwriters from these emission

conditions, including doubts about the information provided on the origin

the financial resources intended to cover or used subscription prices

bonds. For the avoidance of doubt shall be that on the part of the issuer

doubts remain about the good faith of the other underwriters in particular in

When the underwriter to the issuer fails to submit the required information,

information or documents in accordance with point 10 of these emission conditions. For

in case the doubts about the good faith of the other underwriters, in particular in the

the context of the purpose of the subscription of bonds or the origin of the financial resources

the funds will be on the side of the issuer of the bonds persist, or

arise only in relation to the part of the upisovaných bonds, the issuer is

shall be entitled to refuse a request for subscription and only in relation to such part

upisovaných bonds. If, as a result of this partial refusal

request for subscription amounted to subscribe one Subscriber less than 1 000 (in words:

one thousand) bonds, thereby violating the conditions on

the minimum subscription of one subscription request according to the second sentence of point 9

These emission conditions, the issuer is entitled to refuse a request for subscription for shares in the

full range. Neuspokojeným or partly uspokojeným investors returns

the Ministry of the prices paid by subscription of the bonds, which were subscribed,

but they were no longer the Subscriber paid to the payment account of the Distributor or

the Ministry, without undue delay, only non-cash transfer on

payment account from which the funds were remitted to the competent

the account of the Distributor or the Ministry, or payment account referred to in

request for subscription in the case of payment of the subscription price of the bond in cash for

Distributor.



12. the subscription period for the first tranche of the bond issue is terminated as of the date

29.11. 2013, or a date to be determined by the issuer, from which date

whichever is the earlier.



13. On the issue of possible further tranche bond issue the following

After the first tranche of the bond issue, according to item 12 of these emission conditions

the issuer may decide and specify a start date and end date

the subscription period of the relevant additional tranche bond issue. The notice of

any other tranches of bonds issue shall be published on the

the website of the Ministry. The emission rate of any of the bonds

issued by emission of this point the conditions will always be determined by the issuer with the

taking into account the prevailing current conditions on the financial market and after

taking into account the possible corresponding proportional yield as of the date of issue

the relevant tranche of the bond issue.



14. The request for conversion of the bonds is served by the Distributor and

under the conditions specified and published by the issuer through

of the Ministry. The bonds are converted without a cash settlement.

The transferability of the bonds in accordance with § 26 paragraph. 6 of the Act on

bonds limited, so that the bonds can be converted only to the person

referred to in point 4 of these emission conditions. The person to whom the

the bonds are transferred, is required when filing a request for conversion of bonds

the Distributor or the Ministry of a trusted way to certify that the

It belongs among the persons referred to in point 4 of the emission conditions, and demonstrate

their permission to act on behalf of such persons or for such persons.

Transferability bonds after the date 12. 11.2018.



15. The yield of a bond (hereinafter referred to as the "yield" or "income") is designed

a fixed interest rate in the amount for each period is increasing

and which is established according to point 1 of these emission conditions. Yields are

paid once a year, and it's always the date 12. 12. starting from the year of

2014. the total amount of the proceeds from all bonds of the owner of this issue

the bonds to be paid to the owner of the bonds, after taxation tax charge

a deduction from the special tax rate shall be rounded down to pennies. If the

the date of the payment of the proceeds on a day which is not a working day, it will be
payment of the proceeds made on the first following working day without

the yield for the transferring.



16. The yield shall be determined as the 12-month period, from 12.

12. the year to 12. 12. of the following year. The first yield

the period for the payment of yield shall be determined from the 12. 12.13 to 12. 12. in 2014.

The calculation of the yield and the relative yield takes place on the basis of the actual number of

calendar days in a year and the actual number of days in the relevant výnosovém

period (act/act). Yield period means the competent

period according to item 1 of these emission conditions. Relative yield

in the price of the bond counts from the date of issue, or from the start date

the relevant period of revenue growth and is calculated as the revenue multiplied by the

the share of the actual number of days from the start date of the relevant revenue

the period to the date of calculation of the relative yield and the actual number of days

the relevant period of revenue growth. The total amount of maximum yield from all

the owner of this bond issue bonds for the purpose of calculating the proportional

the yield is quoted on pennies.



17. The yield specified according to item 15 of the emission conditions, always received

the person who is the owner of bonds to date, 12. 11. starting in

2014. The yield for the first period from the date of issue until 12. 12.2014

receive the person who is the owner of the bonds to the date 12. 11. in 2014.



18. the law on the yield from the bond.



19. the issuer is entitled to write bonds in their first release on

the issuer's securities account in the register of the Ministry according to the provisions of § 15

paragraph. 4 the law on debt and the acquisition of bonds before the date of their

maturity, including the sale of bonds at any time after the issue date for the

any price and under other conditions specified by the Ministry. Custom

bonds acquired by the issuer prior to maturity date, including

bonds purchased by the issuer, do not disappear and is at the discretion of the issuer,

whether it is the property of the issuer and of the leaves or is sold, or whether it decides to

otherwise. The issuer further according to the provisions of section 9 (2). 2 (a). to act on)

bonds to pay off bonds reserves the right prior to the date of their

the due date including proportional yield, when on the side of the issuer in

relation to the owner of the bonds raised doubts as to the

the veracity of the data provided and the information or other doubts,

whether the subscription of bonds in accordance with the nature and the requirements laid down

those conditions or whether they do not circumvent, especially with

regard to the circle of persons entitled to acquire these bonds according to item 4

These emission conditions and other obligations of the underwriters, respectively.

owners of the bonds from these emission conditions, including doubt as to the

the information provided about the origin of the funds or

used to cover the price of the subscription of bonds, and at the same time these doubts

will persist even after the application of the procedure in accordance with point 10 of these emissions

terms and conditions. For the avoidance of doubt shall be that on the part of the issuer

doubts remain about the good faith on the part of the owner of the bonds

in particular, in the case where the owner of the issuer does not submit

the data, information or documents in accordance with point 10 of these

emission conditions. In case of doubt about the good faith of issuer on the

side of the owner of the bonds, in particular in the context of the purpose of the subscription

bonds or the origin of the sources of funds, will persist and

After the application of the procedure in accordance with point 10 of these emission conditions, and only in the

relation to the part of the owner of the bonds, the issuer is entitled to

pay only part of the bond owner concerned before the date of their

the due date. If this procedure would result in the ownership of the

the owner of the bonds remained less than 1 000 (in words: one thousand) units

the bonds, the issuer is entitled to pay off all the bonds owned by

the owner concerned, before the date of maturity. The notification to the issuer of the

repayment of the bonds before their maturity date (hereinafter referred to as the "notification

the issuer of an early repayment) the issuer is entitled to send to the address

referred to in the request for subscription or the registered owner of the securities account

bonds in the Ministry and to do so through

the Distributor, and the issuer or the distributor shall be entitled to deliver

the owner of the bonds, the issuer's notice of early repayment

through the postal service provider. The decision of the issuer of the

the repayment of the nominal value of all or part of the bonds of the

the owner of the bonds before their maturity date is effective at the moment

the delivery of the notification to the issuer of the early repayment to the owner

bonds; If the owner refuses bond acceptance notification

the issuer of the early repayment, the effects occur, the delivery of

notification of the time of the refusal of its adoption. If the owner of the

bonds of the issuer in the notification of early repayment

reached, the effects of the service occurs at the moment when the process of

delivery of the first time he tried, provided that the document was then in the

accordance with applicable postal conditions imposed and the owner of the

Yet it's bonds in due time did. If you fail to

the notification to the issuer of the early repayment to the owner of the bonds

deliver because at the point of delivery delay occur, the effects of

the delivery time of the return of the document to its sender, undeliverable

i.e.. to the issuer or to the Distributor. From the date on which the time

service//the effects of the notification to the issuer of the early repayment

including, not bonds, in number of units, on which the redemption of the bonds prior to the

the date of maturity, the transfer applies. For this purpose, the issuer's

reserves the right from the time of dispatch of the notice to the issuer on early

repayment to the time when the issuer of the delivery has been demonstrated/effects

the delivery of the notification to the issuer of the early repayment to the owner

block the number of pieces of bonds bonds, on which the decision of the issuer

the repayment of the bonds before their maturity date applies. The issuer, or

subsequently applied for the conversion of the bonds fail/on the basis of the statement to

the registration of transfer of the bonds to the issuer, which was delivered on the day and/or after

the date on which the time of delivery of the notification to the issuer/effects

an early repayment. The number of pieces, which are the bonds of the

the issuer paid before the date of maturity, including the date of early

repayment of the bonds thus splácených before the date of maturity shall

the notification to the issuer the issuer in an early repayment period

maturity does not exceed 30 (thirty) days. For the determination and calculation of the

the resulting amount is repaid including the method of taxation shall apply paragraph 20

These emission conditions, mutatis mutandis, with the expectation that the amount will be

repaid to the person who is the owner of the bonds on the date of delivery/effects

the delivery of the notification to the issuer of the early repayment. The amount corresponding to

the nominal value of the bonds to yield competent owner and adding after

taxation the tax levied by deduction from the special tax rate will be

the owner of the bonds at the redemption before the date of maturity

paid only by non-cash transfer to the payment account, that it is conducted

at a bank or a branch of a foreign bank in local currency (LCY), and which is

registered owner of the securities account in the register of bonds

of the Ministry. Repayment of bonds before their maturity date shall expire

at the same time with the right owner to the yield of the bond. The total amount of

corresponding to the total nominal value of the bonds of the splácených before the date of

their maturity and yield or relative yield of

pieces of the bonds paid before the date of maturity of the payment

the owner of the bonds for the period from the start date of the relevant revenue

the period up to the date of early repayment of taxes levied after taxation

a deduction from the special tax rate shall be rounded down to pennies.



20. The owner of the bonds may request the issuer through the Distributor

and under the conditions specified and published by the issuer through

the Ministry for the repayment of the nominal value of all or part of it

owned by the bonds of this bond issue before the fixed date

due date according to the conditions listed below and according to the following timetable

(hereinafter referred to as "request for early repayment"):



+---------------------------------------------------------+----------------------------+

| The period for the submission of applications for early repayment | |

+----------------------------+----------------------------+ |

| The first possible date | The last possible date | Date |

| submission of the application owner | submission of the application owner | early repayment |

| bonds | bonds | |

+----------------------------+----------------------------+----------------------------+

| 1.10. 2014 | 31.10. 2014 | 12.12. 2014 |

| 1.4. 2015 | 30.4. 2015 | 12.6. 2015 |

| 1.10. 2015 | 30.10. 2015 | 12.12. 2015 |

| 1.4. 2016 | 29.4. 2016 | 12.6. 2016 |

| 3.10. 2016 | 31.10. 2016 | 12.12. 2016 |

| 3.4. 2017 | 28.4. 2017 | 12.6. 2017 |

| 2.10. 2017 | 31.10. 2017 | 12.12. 2017 |
| 3.4. 2018 | 30.4. 2018 | 12.6. 2018 |

+----------------------------+----------------------------+----------------------------+



The yield or relative yield for the period from the start date

the relevant revenue period until the date of early repayment will be

taxation the tax levied by deduction from the special tax rate paid and the

the nominal value of the relevant bonds will be repaid to the person who is

the owner of the bonds on the first working day following the

the last possible date of submission of the request for early repayment.

Request for early repayment of the bond owner can submit

through the distributor only in the periods for the submission of applications for

the early repayment of designated by the issuer as of this point of emission

terms and conditions. From the moment of submission of the request for early repayment cannot be

bonds in the number of pieces in which a request was made for early

repayment, to convert. A bond owner can have one date

early repayment of only one request handed the early repayment and the

through asking for repayment of the bonds owned before

set a due date in the number of pieces of at least 1000 (in words: one

thousand). In the event that the number of units owned by the bonds on securities

the account of the owner of the bonds is less than 1 000 (in words: one thousand), may

the owner of the bonds to request repayment of the bonds owned before

set a due date in the number of pieces smaller than 1 000 (in words: one

thousand), if you ask for repayment of all the pieces owned bonds

registered on the securities account in the register of the Ministry before

set a due date. A bond owner can one

the date of early repayment request repayment before the fixed date

100% maturity (in words: one hundred per cent) owned the bonds to the

the number of pieces of 500 000 (five hundred thousand) including and not more than 50% (in words:

fifty percent) owned the bonds over a number of pieces of 500 000

(in words: five hundred thousand). Bonds repayment before the fixed date

the due date shall expire at the same time with the right of the owner of the bonds to yield.

The amounts corresponding to the nominal value of the bonds and the owner to the competent

the yield or relative yield after taxes taxes levied by deduction from

special tax rate will be the owner of the bonds at the redemption before

set due date paid only by non-cash transfer to the

a payment account held at a bank or a branch of a foreign bank in the

the domestic currency (CZK) and that is registered in the securities account owner

bonds in the register of the Ministry. If the date of early

the repayment on a day which is not a working day, payment will be made

the first following working day without the right to payment of the proceeds, or

the proportional proceeds for the transposition of the payment. Change the payment account shall notify the

the owner of the bonds the Ministry through the Distributor, unless

the Ministry otherwise. The total amount corresponding to the total nominal

the value of the bonds before maturity date, splácených and

the relevant yield or relative yield of the bonds, the number of pieces in the

which the application is lodged by the early repayment, payable to

the owner of the bonds for the period from the start date of the relevant revenue

the period up to the date of early repayment of taxes levied after taxation

a deduction from the special tax rate shall be rounded down to pennies.



21. The bonds will be redeemed at their nominal value at the date of 12. 12.2018,

failing to repay the bond before the agreed due date from

section 19 or 20 of these emission conditions or the absence of the owner

Bond request for re-investment bonds according to item 23 of these emissions

terms and conditions. To this date, ending interest bonds. The issuer according to section 17 of the Act

bonds held that the right to repayment of the bonds is a person who

It is entitled to exercise the rights associated with the bonds on the date 12. 11.2018.

The nominal value of all the bonds will be repaid, along with owner

the payment of the last return to the person who is the owner of bonds to

date 12. 11.2018. If the date of repayment of the nominal value of the

bonds and the final yield on a day which is not a working

the date of these payments will be made to the first following working day without

entitlement to payment of the proceeds for the transposition of the payment.



22. the issuer undertakes to ensure the repayment of the nominal value of the

bonds, together with the payment of the last owners of the bonds yield from

These emission conditions exclusively in CZK or another currency,

that will be the date of the implementation of the relevant payments to the legal currency of the Czech

of the Republic. On the security of repayment of the bonds and the payment of the income

involved in the central securities depository, and with the Czech National Bank

and the Ministry. The Issuer reserves the right at any time to delegate to another or

the next person to be involved in the security of repayment of the bonds and

payment of the proceeds. Notice about these possible additional charge

persons will be published on the website of the Ministry. This

the change may not be caused by the owners of the bonds, and any such

the change will take effect no later than thirty days before the date of the earliest

thirty days after the date of their respective revenue period or

early repayment. The nominal value of the bonds will be repaid, along with

the payment of the proceeds after tax last tax levied by deduction from

special tax rate only non-cash transfer on account of payment,

that is kept with the Bank or branch of a foreign bank in domestic currency

(CZK) and that is registered in the securities account of the owner of the bonds in the

the register of the Ministry, the absence of the owner of the bond request

the reinvestment of bonds according to item 23 of these emission conditions. Change

payment account shall notify the owner of the bonds the Ministry through the

the Distributor, if the Ministry does not specify otherwise. The total amount of the last

the yield of all bonds of the owner of this bond issue paid

the owner of the bonds, after tax according to special taxes levied by deduction

the tax rate shall be rounded down to pennies. The owner of the bonds, which is a tax

a resident of the Contracting State with which the contract is concluded on the Elimination

double taxation is for the application of the benefits arising from this

the Treaty obliged to prove the tax residence accompanied by a certificate of tax

residence issued by the competent foreign tax administrator to the appropriate person

contributing to the security of the repayment of the bonds and the payment of the proceeds from

This point of emission conditions. Notification of the designation of this person

be published on the website of the Ministry. If the owner of

bonds does not confirm the actual ownership of the interest income from held

bonds and residence/residence for tax purposes, i.e., in a Contracting State. in

Member State of the European Union and the European economic area, or

in the State or jurisdiction, with which the Czech Republic has concluded a valid

and effective treaty containing provisions on the exchange of tax information, and

the actual owner of the Ministry will have the necessary

the information will be applied to the appropriate rate of tax withholding from

special tax rate according to the income taxes Act designated payers,

who are not residents of the Contracting States.



23. If the Ministry in sufficient time before the

the due date, the owner of the bonds shall be entitled to request

the reinvestment of bond issuer's request through a Distributor and

under the conditions specified and published by the issuer through

the Ministry of revenue and the reinvestment of the last of the nominal value of all

or part owned bonds of this bond issue. In such a

the case will not be the owner of the bonds, their total nominal value

or the relevant part thereof paid non-cash transfer on payment

account from paragraph 22 of the emission conditions, but will be the owner of the

the required amount of reinvestována in government bonds in advance of intended

by the Ministry. The reinvestment of bond request cannot be

reinvest the nominal value of bonds-traffic rights of third

persons, in particular the law of the lien, or nominal value of the bonds,

which is registered in the register of the Ministry of the suspension of the exercise of the right

the owner of the bonds. Notification of the date from which it is possible to

to submit a request for the reinvestment of bond, and Government bonds, to

that the nominal value of the bonds to reinvest, to

published in sufficient time on the website of the

of the Ministry. The owner of the bonds may request through one

the reinvestment of bond request a re-investment by nominal value

owned by the bonds to government bonds intended by the Ministry in

the number of pieces of at least 1000 (in words: one thousand). About the reinvestment of the nominal

the values of all or part of the owned Bonds asks the owner of the

bonds the Ministry reinvested in the bond request

through a Distributor, and under the conditions specified and published

the issuer also through Ministry. The last day for the submission of

applications for the reinvestment of bond is 11. 11.2018.



24. On a securities account of the owner of the bonds established by the Ministry in
the register of the Ministry is registered only one payment account for the purposes of

payment of the proceeds, the repayment of the bonds before maturity date, and

the repayment of the nominal value of the bonds, for all State bonds

owner, that are recorded in the register of the Ministry. All payments

referred to in the first sentence of this point of emission conditions will be remitted on

payment account logged in the records of the Ministry of two working days before the

the date of implementation of the relevant payments.



25. The valid assessment of financial eligibility (rating) of long-term

on CZK-denominated liabilities at the date of the determination of emission conditions made

by Standard Poor's & is at level AA, by Moody's on

level A1 and by Fitch Ratings to AA-level.



26. The bonds are direct, unconditional obligations of the Czech and nepodřízenými

the Republic, which are on the same level with all the other existing

and future direct, unconditional obligations of the Czech and nepodřízenými

of the Republic.



27. All the rights associated with the bonds in accordance with the provisions of section 42

the Act on the bonds expire on the expiry of 10 years from the day when she could

be applied for the first time.



28. These terms and conditions promulgated by the Ministry in the collection of laws.

Any notice to the owners of the bonds and the notification to the public

concerning these bonds shall be published in the Czech language to the

the Ministry's website in the section in which the issuer will publish

information about government bonds issued by him.



29. The operational order of the records of the Ministry is published as amended on

the website of the Ministry and is binding on all owners

bonds and distributors and for all persons involved in the

repayment of the bonds and the payment of security.



30. The Ministry reserves the right to do all the tasks related to the

keeping the Ministry, subscription bonds, bond repayment

before the date of maturity, the reinvestment conditions, the nominal value of bonds,

entries in the register of the Ministry of information, changes, and other related

activities defined the operational order of the records of the Ministry.



31. These conditions can be translated into foreign languages. If there is a

the discrepancy between the different language versions of the emission conditions, will

the Czech version.



Minister:



Ing. Fischer, CSc., r.