24 January 2013

Invitation to tender

Norges Bank announces the 21st increase of 5.0 per cent Norwegian government bond 2004/2015, ISIN NO 0010226962, NST 471. Bonds with a nominal value of NOK 3 billion will be sold by uniform price (Dutch) auction on Tuesday 29 January 2013. Settlement date is Friday 1 February 2013.

1. Issue terms
1.1 The issue terms for ISIN NO 0010226962 are set out in the invitation to tender of 19 May 2004. The bond has a nominal interest rate of 5.0 % per annum, with annual interest payments on 15 May and fixed maturity at par value on 15 May 2015. The bonds have a denomination of NOK 1000, and are registered in the Central Securities Depository (VPS) and listed on the Oslo Stock Exchange.

1.2 The outstanding amount is NOK 67,125 billion as of today's date. Following the increase, the loan will consist of fungible bonds with a total nominal value of NOK 70,125 billion.

1.3 Yield to Maturity:

  • 1.39 % per annum at a price of 108.05 %
  • 1.45 % per annum at a price of 107.90 %
  • 1.52 % per annum at a price of 107.75 %
  • 1.58 % per annum at a price of 107.60 %
  • 1.64 % per annum at a price of 107.45 %

2. Method of sale
2.1 Bonds for a nominal value of NOK 3 billion will be offered by uniform price auction.

2.2 Primary dealers shall submit tenders from 10.15-11 am on 29 January 2013 in the trading system of the Oslo Stock Exchange. 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 two decimal places. In addition to the price, the tenderer shall pay accrued interest of 3.589041096 per cent of the nominal value, as compensation for 5.0 % nominal interest in the period 15 May 2012 - 1 February 2013, i.e. 262 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 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 1 February 2013, before 7 am.

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 8.50 % per annum. 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, 24 January 2013

Ministry of Finance

Norges Bank

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