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1. Central Bank of Samoa
Security description
These
documents have been prepared for those resident financial entities,
companies and individual members of the Samoan public, who are
interested in becoming potential investors of CBS securities. All
interested investors must register as bidders before they can
participate in the tender for CBS securities. The CBS securities
Prospectus gives an outline of the criteria potential investors need
to meet to be accepted as registered bidders.
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2. Fees &
Tax Reductions
The
registration, issue, transfer and redemption of Securities will be
made free of any duty, charge, or levy, except to the extent
required by law.
The
withholding tax provisions of the Income Tax Administration Act 1974
apply to the Securities.
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3.
Eligibility Criteria
Bids may be placed
only by bidders who are registered with the Central Bank of Samoa in
accordance with the Operational Guidelines. Members and staff of
the Central Bank, including their immediate relatives, are not
eligible to bid for the Securities. Application forms for
registration are available from the Banking & Corporate Services
Department, Central Bank of Samoa, Central Bank Building (Ground
Floor), Apia. For more information, contact either the Manager
(telephone 34250 or 34100) or the Assistant Manager (telephone 34
253) of the Banking & Corporate Services Department.
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4.
Amounts of Bids
Competitive Bids
Investors may submit multiple bids, each
bid at a different yield to maturity. Each bid must be for a minimum
amount of $1,000 (face value and in multiples of $100 (face value)
thereafter.
Non-competitive Bids
Only one non-competitive tender
may be submitted per investor, otherwise all of an investor’s
non-competitive bids will be rejected. Bids must be for a minimum
amount of $1,000 (face value) and in multiples of $100 (face value)
thereafter. The maximum amount for a non-competitive bid is $100,000.
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5.
Yield to maturity for competitive bids
Each competitive bid
must state clearly the yield to maturity (percentage per annum)
sought by the bidder. The yield should be expressed to the second
decimal place (for example, 3.25%, 4.55% or 5.12%). Decimal places
beyond two will be disregarded.
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6. Amounts of Bids
- Bids must be
submitted by entering all the required details in the prescribed
tender form available from the Central Bank. The complete tender
form(s) should be sealed in an envelope and deposited in the special
tender box provided at the Enquires Counter of the Central Bank of
Samoa, Central Bank Building (Ground Floor), Apia before the closing
time stipulated in the Invitation to Tender.
- No bid may be
withdrawn or amended after it has been lodged.
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7.
Acceptance or Rejection of Bids
The Central Bank reserves
the right to accept bids for the full amount on offer in the tender or
any part thereof. The Central Bank also reserves the right to reject
any bid or part thereof on any grounds whatsoever.
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8.
Allotment of Securities
The allotment of bills
shall be made in accordance with the Operational Guidelines.
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9.
Settlement of Bids
The settlement amount
(price) of a successful bid shall be calculated by applying the formula
as specified in the Operational Guidelines.
Settlement must be made
on issue day, which is the first Banking Day after the day of the
tender. The successful bidders, other than the commercial banks, should
settle the amount due in full by delivering cash or a cheque payable to
the Central Bank by 2.00 p.m. on the issue day to the Bank. Settlement
in cash should not exceed $2,000 per investor. For the
commercial banks, settlement will be effected by debiting their Exchange
Settlement accounts at the Central Bank. The Central Bank reserves the
right to cancel bids not settled as required.
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10.
Transfer of Ownership
Securities are negotiable
and transferable in accordance with the conditions specified in the
Operational Guidelines.
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11.
Rediscounting at the Central Bank
Securities may be sold
back to the Central Bank before they mature, at a discount (or price)
determined and published by the Bank from time to time. The Central
Bank may also offer to buy back any outstanding bills from time to time
at negotiable prices.
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12.
Repayment on Maturity
The redemption of Securities will be made in accordance with the
relevant terms and conditions specified in the Operational Guidelines.
Payments will be made starting from 2.00PM on the day the Securities
mature. If the maturity day is a Bank holiday, repayment is made on the
next Banking Day without payment of additional interest.
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13.
Operational Guidelines and
Invitation to Tender
This Prospectus should be read in conjunction with the Operational
Guidelines issued on 7 January, 1998 and the Invitation to
Tender relevant for the upcoming auction
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