SGDB N°055/2015: New Issuance of Securities with Early Redemption Option at the Issuer's Discretion

[Logo: Banco Central de Bolivia]

BCB-DGD-VUC
2015 NOV 13 PM 3:10
BANCO CENTRAL DE BOLIVIA
ESTADO PLURINACIONAL DE BOLIVIA
N°
TRAMITE GENERAL
DESPACHADO

EXTERNAL CIRCULAR

La Paz, November 11, 2015
SGDB N° 055/2015

FROM: GENERAL MANAGEMENT
MONETARY OPERATIONS MANAGEMENT
TO: PARTICIPATING ENTITIES OF THE ELECTRONIC SECURITIES AUCTION SYSTEM SUBJECT: NEW ISSUANCE OF SECURITIES WITH EARLY REDEMPTION OPTION AT THE ISSUER'S DISCRETION

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB) notifies the participating entities of the Electronic Securities Auction System that, through BCB Board of Directors Act No. 43/2015 dated October 6, 2015, the issuance of securities with an early redemption option was approved, along with their issuance characteristics and the procedure for executing the option, as detailed in the attached issuance prospectuses, for your information.

Likewise, the Financial System Supervision Authority (ASFI) issued Circular ASFI/348/2015, through which it informs securities market participants about the modifications made to the Key Assignment Regulations, in order to incorporate said securities.

In this framework, the BCB will timely disseminate, through the usual publication of the offer, the inclusion in the auction of public securities consisting of Central Bank of Bolivia Letters with Early Redemption Option (LRs) and Central Bank of Bolivia Bonds with Early Redemption Option (BRs).

If you require further information regarding the new issuances, please contact the BCB Sub-manager of Open Market Operations, Lic. Luis Cernadas Miranda, at phone number 2661950 or via email at lfcernadas@bcb.gob.bo.

Sincerely,

[Signature]
ABEL F. SANJINES ALVAREZ
MONETARY OPERATIONS MANAGER
BANCO CENTRAL DE BOLIVIA

[Signature]
CARLOS A. COLODRO LÓPEZ
GENERAL MANAGER a.i.
BANCO CENTRAL DE BOLIVIA

CCL/ASA/LCM/mavg
Attachments: Issuance Prospectuses for LRs and BRs C.c. Archive

Ayacucho Street corner Mercado · Telephone: (591-2) 2409090 · Fax: (591-2) 2661590 www.bcb.gob.bo · bancocentraldebolivia@bcb.gob.bo · La Paz Bolivia

ISSUANCE OF PUBLIC OFFER LETTERS OF THE CENTRAL BANK OF BOLIVIA SECURITIES DESIGNATION: "CENTRAL BANK OF BOLIVIA LETTERS WITH EARLY REDEMPTION OPTION"

	Issuance Characteristics
1.	Issuer Name	Central Bank of Bolivia (BCB)
2.	Issuance Currency	Defined by the BCB Open Market Operations Committee (COMA)
3.	Total Issuance Amount	Defined by COMA based on monetary policy objectives
4.	Type of Security to be Issued	Central Bank of Bolivia Letter with early redemption option
5.	Number of series into which the issuance will be divided	Defined by COMA
6.	Recipients of the Primary Public Offer	Financial entities with a license to operate from the Financial System Supervision Authority (ASFI) or the Social Pension Supervision and Control Authority (APS)
7.	Primary Placement Method (Negotiation Mechanisms)	Competitive Auction, BCB Money Desk, or others defined by the BCB Board of Directors
8.	Designation of each series	Based on the issuance week
9.	Nominal Value	Bs1,000
10.	Interest Type/Discount Rate	Fixed/Defined by COMA
11.	Issuance Term	Defined by COMA
12.	Capital Payment	At maturity, in case the early redemption option is not exercised
13.	Payment Method	Account credit
14.	Issuance Date	Defined by COMA
15.	Form of Security Representation	Book entries in the Book Entry Registration System of the Securities Depository (EDV)
16.	Placement Price	Defined according to bids registered in the auction or by COMA
17.	Placement Term	Indefinite
18.	Issuance Registration	In the Securities Market Registry and the Bolivian Stock Exchange
19.	Form of Security Circulation	Registered
20.	Board Key	LRMOXXXXAASS
21.	Early redemption by investor decision	Yes, subject to conditions defined by COMA
22.	Early redemption option by issuer decision	American (at any time during the security's validity after the redemption protection period), for the total amount of the issuance
23.	Redemption Price	At curve price calculated according to the unit price formula for letters (simple interest): <br> $PU = \frac{VN}{(1 + TEA) \frac{PL}{360}}$ <br> Where: <br> PU = Unit price <br> VN = Nominal value <br> TEA = Effective annualized rate <br> PL = Term in days to the letter's maturity date
24.	Redemption protection period	Defined by COMA
25.	Procedure for executing the early redemption option by issuer decision	1. COMA will define the early redemption conditions (the redemption date, the amount to be redeemed, and the series to be called based on this amount). <br> 2. The BCB will publish in at least one written communication medium, without prejudice to the use of other media, the series to be redeemed early and the date on which the redemption payment will be made, which will be fifteen (15) calendar days from the publication. <br> 3. The Letters to be redeemed will accrue interest until the date fixed for payment. <br> 4. The capital plus the interest calculated according to point 23 (Redemption Price) will be credited to the accounts defined by the security holders on the redemption date.

ISSUANCE OF PUBLIC OFFER BONDS OF THE CENTRAL BANK OF BOLIVIA SECURITIES DESIGNATION: "CENTRAL BANK OF BOLIVIA BONDS WITH EARLY REDEMPTION OPTION"

	Issuance Characteristics
1.	Issuer Name	Central Bank of Bolivia (BCB)
2.	Issuance Currency	Defined by the BCB Open Market Operations Committee (COMA)
3.	Total Issuance Amount	Defined by COMA based on monetary policy objectives
4.	Type of Security to be Issued	Central Bank of Bolivia Bond with early redemption option
5.	Number of series into which the issuance will be divided	Defined by COMA
6.	Recipients of the Primary Public Offer	Financial entities with a license to operate from the Financial System Supervision Authority (ASFI) or the Social Pension Supervision and Control Authority (APS)
7.	Primary Placement Method (Negotiation Mechanisms)	Competitive Auction, BCB Money Desk, or others defined by the BCB Board of Directors
8.	Designation of each series	Based on the issuance week
9.	Nominal Value	Bs1,000
10.	Interest Type/Yield Rate	Fixed/Defined by COMA
11.	Issuance Term	Defined by COMA
12.	Capital Payment	At maturity, in case the early redemption option is not exercised
13.	Payment Method	Account credit
14.	Issuance Date	Defined by COMA
15.	Form of Security Representation	Book entries in the Book Entry Registration System of the Securities Depository (EDV)
16.	Placement Price	Defined according to bids registered in the auction or by COMA
17.	Placement Term	Indefinite
18.	Issuance Registration	In the Securities Market Registry and the Bolivian Stock Exchange
19.	Form of Security Circulation	Registered
20.	Board Key	BRMOXXXXAASS
21.	Number of coupons	Based on the issuance term
22.	Coupon payment period	Semi-annual
23.	Amount of each coupon	Defined based on the nominal yield rate
24.	Coupons negotiable separately	No
25.	Early redemption by investor decision (of principal and coupons jointly)	Yes, subject to conditions defined by COMA
26.	Early redemption option by issuer decision (of principal and coupons jointly)	American (at any time during the security's validity after the redemption protection period), for the total amount of the issuance
27.	Redemption Price	At curve price calculated according to the unit price formula for bonds (compound interest): <br> $PU = \left( \frac{C_v}{1 + TR \frac{PL_v}{360}} \right) + \sum \left( \frac{C_t}{(1 + TR \frac{PL_t}{360})^{t-a}} \right) + \left( \frac{VN}{(1 + TR \frac{PL_t}{360})^{t-a}} \right)$ <br> Where: <br> T = Number of outstanding coupons <br> t = Number of the corresponding coupon <br> PU = Unit price <br> VN = Nominal value of the principal <br> TR = Effective yield rate <br> PLr = Term in days to the next coupon's maturity date <br> PLc = Coupon term <br> a = Number of the outstanding coupon with the nearest maturity <br> Cv = Outstanding coupon with the nearest maturity <br> Ct = Coupon period t
28.	Redemption protection period	Defined by COMA
29.	Procedure for executing the early redemption option by issuer decision	1. COMA will define the early redemption conditions (the redemption date, the amount to be redeemed, and the series to be called based on this amount). <br> 2. The BCB will publish in at least one written communication medium, without prejudice to the use of other media, the series to be redeemed early and the date on which the redemption payment will be made, which will be fifteen (15) calendar days from the publication. <br> 3. The Bonds to be redeemed will accrue interest until the date fixed for payment. <br> 4. The capital plus the interest calculated according to point 27 (Redemption Price) will be credited to the accounts defined by the security holders on the redemption date.