Regulatory Alerts2015-11-13 | SGDB N°055/2015Added · Updated
SGDB N°055/2015: New Issuance of Securities with Early Redemption Option at the Issuer's Discretion
The Central Bank of Bolivia authorizes the issuance of Central Bank of Bolivia Letters (LRs) and Bonds (BRs) featuring an American-style early redemption option exercisable by the issuer at any time after a protection period. These securities, with a nominal value of Bs1,000, are offered to financial entities licensed by the ASFI or APS through competitive auctions or the BCB Money Desk. The issuer must publish redemption details at least 15 calendar days in advance, and redemption prices are calculated using specific formulas based on the effective annualized rate or yield.
[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 |
| 2. | Issuance Currency |
| 3. | Total Issuance Amount |
| 4. | Type of Security to be Issued |
| 5. | Number of series into which the issuance will be divided |
| 6. | Recipients of the Primary Public Offer |
| 7. | Primary Placement Method (Negotiation Mechanisms) |
| 8. | Designation of each series |
| 9. | Nominal Value |
| 10. | Interest Type/Discount Rate |
| 11. | Issuance Term |
| 12. | Capital Payment |
| 13. | Payment Method |
| 14. | Issuance Date |
| 15. | Form of Security Representation |
| 16. | Placement Price |
| 17. | Placement Term |
| 18. | Issuance Registration |
| 19. | Form of Security Circulation |
| 20. | Board Key |
| 21. | Early redemption by investor decision |
| 22. | Early redemption option by issuer decision |
| 23. | Redemption Price |
| 24. | Redemption protection period |
| 25. | Procedure for executing the early redemption option by issuer decision |
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 |
| 2. | Issuance Currency |
| 3. | Total Issuance Amount |
| 4. | Type of Security to be Issued |
| 5. | Number of series into which the issuance will be divided |
| 6. | Recipients of the Primary Public Offer |
| 7. | Primary Placement Method (Negotiation Mechanisms) |
| 8. | Designation of each series |
| 9. | Nominal Value |
| 10. | Interest Type/Yield Rate |
| 11. | Issuance Term |
| 12. | Capital Payment |
| 13. | Payment Method |
| 14. | Issuance Date |
| 15. | Form of Security Representation |
| 16. | Placement Price |
| 17. | Placement Term |
| 18. | Issuance Registration |
| 19. | Form of Security Circulation |
| 20. | Board Key |
| 21. | Number of coupons |
| 22. | Coupon payment period |
| 23. | Amount of each coupon |
| 24. | Coupons negotiable separately |
| 25. | Early redemption by investor decision (of principal and coupons jointly) |
| 26. | Early redemption option by issuer decision (of principal and coupons jointly) |
| 27. | Redemption Price |
| 28. | Redemption protection period |
| 29. | Procedure for executing the early redemption option by issuer decision |