News Column

Norges-Monetary policy in Norway

June 12, 2014

ENP Newswire - 12 June 2014

Release date- 11062014 - Announcement of Treasury bill auction.

Invitation to tender

Issue of new zero coupon Norwegian Treasury bill, ISIN NO0010713365, NST 27. The bill will be offered by uniform price (Dutch) auction on Monday 16 June 2014. The issued amount will be NOK 14 billion, of which NOK 6 billion is reserved for the Norwegian Government. Settlement date is Wednesday 18 June 2014.

1. Issue terms

1.1 The nominal value of the issue for ISIN NO0010713365 is NOK 14 billion. The Government has the right to increase the size of the bill, or to reduce it by the amount of repurchased bills. The bills have a denomination of NOK 1000, and will be registered in VPS (Norwegian Central Securities Depository) and listed on the Oslo Stock Exchange.

1.2 The maturity is 364 days. The loan is dated 18 June 2014 and has fixed maturity at par value on 17 June 2015.

1.3 Yield to maturity:

1.19% per annum at a price of 98.8250%

1.35% per annum at a price of 98.6750%

1.50% per annum at a price of 98.5250%

1.66% per annum at a price of 98.3750%

1.81%per annum at a price of 98.2250%

2. Method of sale

2.1 Bills for a nominal value of NOK 8 billion will be offered by uniform price auction.

2.2 Primary dealers shall submit tenders from 10.15 to 11.00 am on 16 June 2014 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 nominal 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

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 bills will be finally registered in VPS on settlement date, Wednesday 18 June 2014, 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 9.50 % per annum. 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.

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Source: ENP Newswire

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