Local Loans (Government Treasury Securities) (Trading) Regulations 2009

Supplement No. 3 to Gazette No. 21 of 3rd April, 2009 CONTENTS No. Page LEGAL NOTICE 49 Local Loans (Government Treasury Securities) ................................. 75 (Trading) Regulations, 2009 Published by the Authority of His Majesty the King Price: M19.00

LEGAL NOTICE NO. 49 OF 2009 Local Loans (Government Treasury Securities) (Trading) Regulations, 2009 Arrangement of Regulations PART I - PRELIMINARY Regulations

1. Citation and commencement
2. Interpretation
3. Objectives PART II - PRIMARY MARKET TRADING
4. Issue of treasury bills
5. Issue of treasury bonds
6. Participation
7. Frequency
8. Invitation for bids
9. Submission of bids
10. Method of auction
11. Acceptance and rejection of bids
12. Announcement of results PART III - SECONDARY MARKET TRADING
13. Change of ownership
14. Conditions of transfer PART IV - SETTLEMENT
15. Settlement procedures
16. Method of recording ownership of treasury securities
17. Premature disinvestment or rediscounting at the Bank 75

PART V - SECURITIES USED AS COLLATERAL 18. Collateral 19. Collateral accounts and Unclaimed Securities Account 20. Collateralised transactions PART VI - REDEMPTION 21. Redemption PART VII - REPEAL 22. Repeal LEGAL NOTICE NO. 49 OF 2009 Local Loans (Government Treasury Securities) (Trading) Regulations, 2009 In exercise of the powers conferred on me by section 20 of the Local Loans Act 2001 1 , I, DR. TIMOTHY THAHANE Minister of Finance and Development Planning, make the following regula￾tions: PART I - PRELIMINARY Citation and commencement

1. These regulations may be cited as the Local Loans (Government Treasury Securities) (Trading) Regulations 2009 and shall come into operation on the date of publication in the Gazette. Interpretation
2. In these Regulations, unless the context otherwise requires - “auction date” means the date on which the Bank conducts an auction; 76

“business day” means a day on which commercial banks in Lesotho are open for business; “Central Depository System” means an electronic system that provides for safe custody, immobilization and transfer of securities; “Collateral Account” means a collateral account created by the Bank in accor￾dance with regulation 18(1); “coupon rate” means interest rate stated on the bond, expressed as a percent￾age of the principal or face value; “face value” means the value of the Treasury Securities to be redeemed on maturity date; “Government” means the Government of Lesotho; “Issuer” means the Government of Lesotho; “Minister” means the Minister responsible for Finance and Development Planning and in relation to the issuance of securities includes a person appoint￾ed by him or her for that purpose; “redemption date” means the date on which investors accounts are credited with proceeds arising out of maturities of securities; “securities” means instruments issued under the authority of the Minister as evidence of loans raised under the Local Loans Act 2001; “Securities Account” means a securities account created in terms of regulation 13(2); “settlement date” means the date on which payments for securities are being effected by investors after an auction; “term” means the period from settlement date to maturity date; “the Act” means the Local Loans Act 2001; 77

“the Bank” means Central Bank of Lesotho; “treasury bills” means treasury bills issued under section 5 of the Act; “treasury bills holding confirmation” means a document issued by the Bank in terms of regulation 13(4); “treasury bonds” mean bonds issued under section 5 of the Act; “Unclaimed Securities Account” means a securities account created by the Bank in terms of regulation 18(2); “Value date” means a date on which value is realized. Objectives 3. The objectives of these regulations are: (a) to provide for the auctioning of government securities in a manner consistent with monetary policy objectives of govern￾ment or consistent with the raising of loans to defray govern￾ment expenditures; and (b) to provide for a well functioning system of issuance, trading and redemption of government securities. PART II - PRIMARY MARKET TRADING Issue of Treasury bills 4. (1) As mandated by section 7(1) of the Central Bank Act 2000 2 , the Bank may, at any time and on a regular basis, issue government treasury bills with maturity not exceeding 365 days and shall determine the manner of issuance and allocation of the treasury bills. (2) Treasury bills shall be issued on a discount basis for face val￾ues in multiples of Ml00 and redeemed at their full face value at maturity: Provided that prior to maturity the market price of treasury bills may vary depending on market conditions. 78

(3) The computation of the bid price, given the rate of discount, shall be based on the actual number of days to maturity, with a year consisting of 365 days, using the following formula: Bid Price = FV - (FV x DR x Days to Maturity÷365) where FV means face value and DR means discount rate. (4) Announcements relating to new issues of treasury bills shall be made primarily through public notices on the notice board in the banking hall of the Bank, notices in local newspapers, Central Bank Website, or through any other suitable media. (5) The Bank reserves the right to accept or reject all or any portion of any or all applications. Issue of Treasury Bonds 5. (1) As mandated by section 7(1) of the Central Bank Act 2000, the Bank may, at any time and on a regular basis, issue government treasury bonds with maturity of more than one year and shall determine the manner of issuance and allocation of the treasury bonds. (2) Treasury bonds shall be issued at a premium, par or discount basis in multiples of Ml00 and will be issued with a stated coupon. (3) The day count convention shall be actual÷365 days. (4) Announcements relating to new issues of treasury bonds shall be in form of a prospectus and through public notices on the notice board in the banking hall of the Bank, notices in local newspapers, Central Bank Website, or through any other suitable media. (5) The Bank reserves the right to accept or reject all or any por￾tion of any or all applications. Participation 6. (1) Treasury securities may be purchased by any person or entity. 79

(2) The Bank may issue four sets of treasury bills with maturity of 91, 182, 273, and 364 days. Other securities of any maturity less than 365 days may be issued as and when need arises. (3) The Bank shall issue treasury bonds of more than one year. (4) Bids shall be on competitive and non-competitive basis with the following conditions: (a) participation in the competitive category shall be sub￾ject to a minimum bid of M100,000.00; (b) a maximum of 4 bids per person or entity in the com￾petitive sector shall be accepted; (c) bids in the non-competitive category shall only state the amount being tendered for and shall be for a mini￾mum of M5,000.00; (d) non- competitive bidders shall only submit one appli￾cation per auction. Where a bidder submits two or more bids in the non-competitive market, the Bank reserves the right to reject any or all of the bids. Frequency 7. (1) Auctions for the 91, 182, 273, and 364-day bills shall be issued on a calendar basis prescribed by the Bank. (2) Auctions for treasury bonds shall ordinarily be held once a month or otherwise as prescribed by the Bank. Details of the bonds shall appear in the prospectus. Invitations for bids 8. (1) Invitations for bids shall begin 7 days before the auction date and continue until the day before the auction date. (2) The Bank shall include the following information in each invi￾tation for tenders of treasury bills: 80

(a) the auction date; (b) the deadline for submission of bids; (c) the term (91 day, 182 day, 273 day, 364 day or any other issue) or maturity dates of bills; (d) the registration number of the issue; (e) the day and time for announcement of results of the tender; (f) the deadline for making payments for successful bids; (g) the settlement date; (h) the total face value of bills to be auctioned; (i) the discount rate that cleared the market and total allot￾ment in the last similar auction. (3) The Bank shall include the following information in each invi￾tation for tenders of treasury bonds: (a) the auction date; (b) the deadline for submission of bids; (c) the term longer than 1 year; (d) the name of the bond; (e) the registration number of the issue; (f) the day and time for announcement of results of the tender; (g) the deadline for making payments for successful bids; (h) the settlement date; (i) the value of the bond to be auctioned; (j) yield to maturity of the last bond issue. Submission of bids 9. (1) Bids shall be submitted on the bid form as set out in the Schedule and they shall be signed by the individual whose names appear on the bid form, or in the case of entities, the authorized signatories of that entity. (2) The forms shall be completed in full and shall bear no alter￾ations. (3) Bid forms shall be delivered to the Bank at the designated reception point between 9.00 a.m. and 3.00 p.m. each day during the period specified for the receipt of bids. The deadline for receipt of forms is 3.00 p.m. 81

on the day preceding the auction date. (4) Bids submitted to the Bank after the deadline shall not be accepted, nor shall the Bank entertain any requests to alter or withdraw tenders submitted within the appropriate time limit. (5) The forms shall be submitted in sealed envelopes clearly marked “Tender for Treasury Bills/Bonds for the preferred tenure or name of the bond given to the issue as shown in the invitation to tender”. (6) Envelopes shall also be marked “competitive” or “non-compet￾itive”, as the case may be. (7) Competitive bidders shall specify the amount of the bid and the price offered and the price shall be specified per Ml00.00 to 3 decimal places, provided that the third decimal is a multiple of 0.005. (8) Both competitive and non-competitive bids shall be in multi￾ples of M100.00 face value. Method of auction 10. (1) Bids in amounts equal to Ml00,000.00 or higher, shall be clas￾sified as competitive bids and a bid in this category shall be made by complet￾ing the bid form as set out in the schedule. (2) Allocations under the competitive bidding process shall be made starting with the bid offering the highest price in a descending order until the entire allotment has been exhausted. (3) All successful bidders shall be allocated treasury securities on a uniform or multiple price basis as determined by the Bank from time to time. (4) Bids in amounts equal to M5,000.00 or higher but less than M100,000.00 shall be classified as non-competitive bids and bids under this category shall also be made by completing the bid form. (5) All non-competitive bids shall be allocated either at the weighted average price or at cut off price as determined by the auction. 82

Acceptance and rejection of bids 11. (1) The Bank shall not accept bids in amounts less than M5, 000.00 face value. (2) The Bank reserves the right to accept or reject all or a portion of any or all bids. (3) If, in the case of a competitive bidding process, an auction is oversubscribed, that is, the demand for securities in a given auction exceeds the amount announced as the total face value of the bids to be auctioned, the Bank shall not issue more than the amount announced. (4) Allocation of treasury bills shall be made from the highest bid￾der in terms of price in descending order until the amount offered is exhaust￾ed. (5) Where there is more than one bidder at the cut-off price, allo￾cation shall be made on a pro-rata basis. (6) If, in the event that non-competitive bidders exceed the total amount of securities offered, the allocation shall be made on a pro-rata basis and the market clearing rate of the previous similar tenure auction shall pre￾vail. Announcement of results 12. (1) The results of the tender shall, as far as practicable, be announced by 10.00 a.m. on the auction day and the announcement shall be in the form of written notifications to all applicants. (2) Award advices shall include the amounts accepted and the accepted price for successful applications; and unsuccessful applicants shall be informed accordingly. (3) Bidders, or their representatives, may present themselves at the Bank or their designated commercial bank after 10.00 a.m. on the auction day to receive the notification of the results of the bids and it shall be the respon￾sibility of bidders to collect these notifications. 83

(4) The Bank is not obliged to notify bidders of the reasons for their rejection or otherwise. PART III - SECONDARY MARKET TRADING Change of ownership 13. (1) Holders of securities are free to trade, exchange, pledge, or transfer treasury securities with any counterpart in the market. (2) Changes in ownership shall only be effected by both parties to a transaction. Upon completion of a transfer form, the form shall be complet￾ed in triplicate, a copy of which shall be kept by both the seller and the buyer, and the Bank shall keep the original. (3) On value date, both the buyer and the seller will deliver trans￾fer forms to the Bank. (4) The Bank shall only act upon instructions contained in the transfer form completed and signed by authorised signatories of both parties to the transaction. (5) The parties shall ensure that their identities as they appear in the records held by the Bank are properly reflected in the transfer form. (6) The Bank shall make every effort to ensure that all accounts are operated with utmost integrity and shall take appropriate action to protect treasury securities holders. (7) The Bank shall not guarantee against fraudulent activity and consequently shall not undertake to indemnify losses incurred by any party as a result of fraudulent transfers of securities. Conditions for transfers 14. (1) Where the buyer or both parties to a transfer transaction have clearing accounts with the Bank, the Bank shall transfer securities from the seller’s Treasury Securities Account into the buyer’s Treasury Securities Account against a transfer of funds. 84

(2) In order to achieve the objective in sub regulation (1), the rel￾evant part of a transfer form, which contains funds transfer details, shall be completed by the buyer. (3) Where funds are not being authorized for transfer, a line shall be drawn through the ‘funds transfer’ section of the form. (4) Where the buyer or both parties to a transfer transaction do not have a clearing account with the Bank, the Bank shall effect the transfer of securities by transferring the securities from the seller’s Treasury Bills Account into the buyer’s Treasury Bills Account only upon receiving duly completed and signed transfer form. The Bank shall assume that the terms of payment have been agreed and effected between the two counterparties to the deal. (5) The completed form shall be delivered by hand to the Bank on the day of the transaction and both parties to the transaction shall simultane￾ously present themselves to the Bank on this day. (6) Notifications of transfer of ownership shall be received by the Bank not later than 5 business days before the date of maturity of the bills in question. (7) The Bank shall issue a confirmation to both parties involved in the transfer of bills confirming the transfer. PART IV - SETTLEMENT Settlement procedures 15. (1) Payments for allocations shall be received immediately after the announcement of the results on the auction day until 3:45 p.m. the same business day. (2) Settlement for all transactions shall be effected by debiting commercial banks’ clearing accounts. Non-bank investors shall be required to settle through their designated commercial banks. (3) An allocation of treasury securities shall be irrevocably effect￾ed on the day of the auction. 85

Method of recording ownership of treasury securities 16. (1) The Bank shall not issue treasury securities certificates to investors but shall issue and keep securities in an electronic form. (2) The Bank shall create an electronic register for purposes of recording ownership of securities. (3) In order to register, an investor shall complete a registration form as set out in the schedule before any securities can be registered to the investor, either as a result of primary or secondary market transactions. (4) Upon request by the investor, the Bank shall issue confirmation of ownership of treasury securities. (5) Investors may request a confirmation of the balance of treasury securities holdings by completing a holding request form as set out in the schedule. Premature disinvestment or re-discounting at the Bank 17. (1) The Bank shall be ready to purchase treasury securities from investors: Provided that such a purchase shall take place where an investor has held the security for 75 per cent of its term and at least 5 business days prior to maturi￾ty date of the securities. (2) Investors, or their authorised representatives, who wish to sell their treasury securities to the Bank shall notify the Bank by completing a dis￾investment form as set out in the schedule and hand it over to the Bank. (3) The Bank shall purchase the securities at a price calculated such that the interest rate payable to the Bank on such securities is 4 percent￾age points above the prevailing market interest rate on such securities. In the absence of observable market interest rate, the Bank shall, generally, determine the rate by interpolation between the rates determined in the latest primary auc￾tions. 86

(4) In the case of holders of clearing accounts with the Bank, their Accounts shall be credited with amounts, calculated in accordance with sub￾regulation (3), by close of business on the date of the transaction. (5) In the case of investors that do not hold clearing accounts with the Bank, the Bank shall deposit the proceeds of their investments in their des￾ignated commercial bank accounts. PART V - SECURITIES USED AS COLLATERAL Collateral 18. (1) Investors may pledge their securities as collateral against bor￾rowing from third parties: Provided that the maturity date of the loan comes before the maturity date of the securities being used as collateral. (2) Securities may be used as collateral however they shall not be less than 5 days to maturity. (3) Parties to a secured transaction shall be required to notify the Bank by completing a collateralisation form as set out in the schedule and once submitted to the Bank the forms shall not be withdrawn. Collateral Accounts and Unclaimed Securities Account 19. (1) The Bank shall create Collateral Accounts for purposes of recording transactions of treasury securities being used as collateral. (2) The Bank shall create an Unclaimed Securities Account for purposes of recording securities that have not been claimed or are the subject of dispute between the parties to the transaction. Collateralized transactions 20. (1) Upon receipt of a properly completed collateral release form as set out in the schedule, from parties to a secured transaction, the Bank shall transfer securities from the borrowing party’s Treasury Securities Account to his or her Collateral Account. 87

(2) At the same time, if indicated on the form, the Bank shall trans￾fer the agreed amount from the lending party’s clearing account to the borrow￾ing party’s clearing account. (3) In the case where the borrowing party does not hold a clearing account with the Bank, their money shall be transferred to their accounts with the designated commercial bank. (4) Upon receipt of a properly completed collateral release form, the Bank shall transfer the agreed face value of securities from the borrowing party’s Treasury Securities Account to his or her Collateral Account, provided that the borrower has surrendered his treasury securities holding confirmation to the Bank. (5) Confirmations of the collateral transactions shall be available for collection by both parties to a collateral transaction by the close of the next business day. (6) Where procedures as outlined by the Bank have not been cor￾rectly followed or on account of suspected fraud, the Bank may deem the application for a collateral transaction unacceptable and shall notify the parties accordingly on the next business day. (7) The Bank shall not be involved in the transfer of funds from lender to borrower in the case in which the lender does not have a clearing account with the Bank and as such, shall not be held responsible for transac￾tions that are not fully completed in this case. (8) Upon maturity of a secured transaction, the Bank shall transfer the treasury securities to the borrower’s Treasury Securities Account only upon receipt of a duly completed collateral release form. (9) In the case in which collateral release form has not been received by the Bank by the maturity date of the securities in question, or there is a dispute between parties to a secured transaction, the Bank shall transfer the securities from the borrowing party’s Collateral Account into an Unclaimed Securities Account. 88

89 PART VI - REDEMPTION 21. (1) In Instances where investors need to change their banking details, prior notification to the Bank is required 2 (two) weeks before maturi￾ty date. (2) In the case of holders of clearing accounts at the Bank, their accounts shall be credited with the face value by close of business on maturi￾ty date. (3) In the case of investors that do not hold clearing accounts with the Bank, the Bank shall deposit the proceeds of their investments in their des￾ignated commercial bank accounts. (4) In the event that settlement or maturity date falls on a non-busi￾ness day, payments shall be made on the next business day without penalty. PART VII - REPEAL 22. The Treasury Bill Regulations No. 62 of 2008 3 are repealed. DR. TIMOTHY THAHANE MINISTER OF FINANCE AND DEVELOPMENT PLANNING NOTE

1. Act No. 13 of 2001
2. Act No. 2 of 2000
3. Legal Notice No. 62 of 2008

CBL/TBR/0 GOVERNMENT OF LESOTHO TREASURY SECURITIES REGISTRATION FORM TENDER DETAILS (Compulsory for all first-time buyers and for change of details) PART I Surname of Bidder/Company Name: ––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Physical Address: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Postal Address:___________________________________________________________ City:______________________________ Country –––––––––––––––––––––––––––––– Postal Code:______________________________________________________________ Telephone:________________ Fax:E-mail: Passport Number/Business Registration Number:__________________ Expiry Date:________________________________ Bidder’s nominated beneficiary in the event of the bidder’s death (for natural persons only): I hereby irrevocably nominate: Surname of Beneficiary:________________ Other Names:________________________ (Names as appearing on Passport) Passport Number:______________________ Expiry Date:_________________________ PART II - REDEMPTION DETAILS Payment by: Direct Credit (Complete Bank Details below) Bank Name:_____________________ Account Number: –––––––––––––––––––––––– Account Name:___________________________________________________________ Telephone:______________________ Fax: –––––––––––––––––––––––––––––––– PART III Name(s) of Authorised signatory(s): Signature(s) of Authorised Signatory(s): 1.__________________________________ 1._________________________________ 2.__________________________________ 2._________________________________ 3.__________________________________ 3._________________________________ Alterations are not accepted Date:______________________________ Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. 90

CBL/TBR/1 GOVERNMENT OF LESOTHO SECURITIES BID FORM I/we hereby tender for Government Securities detailed below and agree to pay for this amount in accordance with published auction rules and regulations, or any lesser amount, that may be allotted to me/us, at a price determined by the Central Bank of Lesotho (CBL). Surname of Bidder/Company Name ––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/Business Registration) Other Names –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Auction Date: Security Type: ––––––––––––––––––– Maturity Period: ––––––––––––––––– Amount of Tender Price per 100 Maloti Minimum bid is M5,000 thereafter in multiples (The price must be expressed to three decimal places of M100. and rounded to the nearest.005 (i.e. 96.345, 97.630 etc)). For funds above M100,000

1. M…………………………... @ ……………….................
2. M…………………………… @ ……………………………
3. M……………………………... @ ……………………………
4. M……………………………… @ …………………………… SETTLEMENT For Non-Bank investors: please indicate your settlement bank _____________________________ Names of Authorised Signatory(s): Authorised Signatures:

1. ________________________________ 1. ___________________________
2. ________________________________ 2. ––––––––––––––––––––––––––– For Official Use Only Security Number: Awarded: Yes or No Conditions: Alterations shall nullify the Form. Interest is subject to withholding tax. NB: The Central Bank of Lesotho reserves the right to reject the bid. Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. DATE: I/ we the undersigned authorise you to debit my/ our account no: with __________________________ Bank as per the attached award advice and settle my/ our Securities with the Central Bank of Lesotho. Name ___________________________________ Signature ______________________________________ Name ___________________________________ Signature ______________________________________ Note: Normal conditions of Bank/Client relationship will apply 91

CBL/TBR/2 GOVERNMENT OF LESOTHO TREASURY SECURITIES TRANSFER FORM I/we authorise the Central Bank of Lesotho (CBL) to transfer Treasury Securities from my/our Own Account in accordance with the transaction detailed below. A. TRANSACTION DETAILS Surname of Seller/Company Name: –––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Passport No./Registration No.: –––––––––––––––––––––––––––––––––––––––––––––––––––––– Expiry Date: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Surname of Buyer/Company Name: –––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Passport No./Registration No.: ––––––––––––––––––––––––––––––––––––––––––––––––––––– Expiry Date: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (If the buyer does not hold a treasury bills account, he/she must first complete registration form, CBL/TBR/0) Transaction Treasury Securities Maturity Date Face Value Date Issue Number of Securities to be Transferred Authorised Seller(s) Name(s): Signature(s) of Authorised Signatory(s): 1.__________________________________ 1. _________________________________ 2.__________________________________ 2. _________________________________ Date: ________________________________________ B. FUNDS TRANSFER This section is optional and can only be completed in circumstances where the buyer has a clearing account at the CBL. I hereby authorise the CBL to debit my clearing account for M ______________ and credit the sell￾er’s clearing account. If the seller does not have a clearing account, I/we request a cheque to be made out in favour of the seller. Authorised Buyer(s) Name(s): Signature(s) of Authorised Signatory(s): 1.__________________________________ 1._________________________________ 2.__________________________________ 2._________________________________ Date:__________________________________________ Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. 92

CBL/TBR/3 GOVERNMENT OF LESOTHO TREASURY SECURITIES COLLATERALISATION FORM I/we hereby pledge the Treasury Securities in accordance with the transaction detailed below. I/we authorise the Central Bank of Lesotho (CBL) to debit my Own Account and credit my Collateral Account with the face value of pledged securities, in favour of the named lender to the transaction. A. TRANSACTION DETAILS Surname of Borrower/Company Name: ––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Passport No./Registration No.: –––––––––––––––––––––––––––––––––––––––––––––––– Expiry Date: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Surname of Lender/Company Name: ––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Passport No./Registration No.: –––––––––––––––––––––––––––––––––––––––––––––––––––––– Expiry Date: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Transaction Date Value Date Maturity Date B. DETAILS OF TREASURY SECURITIES TO BE PLEDGED Issue Number Maturity Date Face Value of Pledged Treasury Securities The Treasury Securities will only be returned to my Own Account when the lender submits a prop￾erly completed Collateral Release Form. Authorised Buyer(s) Name(s): Signature(s) of Authorised Signatory(s):

1. ____________________________ 1. –––––––––––––––––––––––––––– 2. ____________________________ 2. –––––––––––––––––––––––––––– Date:__________________________________________ Authorised Seller(s) Name(s): Signature(s) of Authorised Signatory(s):
2. __________________________ 1. _____________________________
3. __________________________ 2. _____________________________ Date:__________________________________________ Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. 93

CBL/TBR/4 GOVERNMENT OF LESOTHO TREASURY SECURITIES COLLATERAL RELEASE FORM I/we authorise the Central Bank of Lesotho (CBL) to release the Treasury Securities from the Borrower’s Collateral Account to the Borrower’s Own Account in accordance with the transaction detailed below. A. TRANSACTION DETAILS Surname of Borrower/Company Name: ––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Surname of Lender/Company Name: ––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Transaction Date Value Date Maturity Date B. DETAILS OF TREASURY BILLS PLEDGED Issue Number Maturity Date Face Value of Pledged Treasury Securities Authorised Borrower(s) Name: Signature(s) of Authorised Lender(s):

1. __________________________________ 1. ______________________________________
2. __________________________________ 2. ______________________________________ Date: __________________________________________ C. FUNDS TRANSFER This section is optional and can only be completed where the lender has a clearing account at the CBL. I hereby authorise the CBL to debit my clearing account for the amount detailed above as the ‘Principal Amount’ and credit the borrower’s clearing account. In the event the borrower does not have a clearing account, please issue a cheque against my clearing account in favour of the borrow￾er. Authorised Lender(s) Name: Signature(s) of Authorised Lender(s): 1.__________________________________ 1. _____________________________________ 2.__________________________________ 2. _____________________________________ Date:__________________________________________ Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. 94

CBL/TBR/5 GOVERNMENT OF LESOTHO TREASURY SECURITIES DISINVESTMENT FORM I/we authorise the Central Bank of Lesotho (CBL) to transfer Treasury securities from my Own Account to the CBL in accordance with the transaction detailed below. A. TRANSACTION DETAILS Surname of Seller/Company Name: –––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport/business registration) Other Names: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– (Names as appearing on passport) Passport No./Registration No.: –––––––––––––––––––––––––––––––––––––––––––––––––––––– Expiry Date: ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Transaction Treasury Maturity Date Face Value Discount Price/Yield Date Bills/bonds Of Bills Rate/ Issue Number Being Coupon Rate Disinvested Authorised Seller(s) Name(s) : Signature(s) of Authorised Signatory(s): 1.__________________________________ 1. ______________________________________ 2.__________________________________ 2. ______________________________________ Date:__________________________________________ Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. 95

96 CBL/TBR/6 GOVERNMENT OF LESOTHO TREASURY SECURITIES STATEMENT REQUEST FORM Treasury Securities Holder’s Name: ………………………………………........................... Treasury Securities Issue No: ..……………………………………….................................. Treasury Securities Holder’s Signature: ………………………………............................... Date: …………………………………………………………………………………................... For Internal Use Only Request received by: ……………………………. Statement provided by:…………………………. Date: ……………………………………………….. Central Bank of Lesotho, P.O. Box 1184, Maseru 100, Lesotho. Printed by the Government Printer, P.O. Box 268, Maseru 100, Lesotho