Securities from the first two issues of government bonds for citizens INVESTOR and PATRIOT are credited to the accounts of the owners. The registration of both issues and the settlement of the sale of the bonds in the accounts of the cooperating banks was ensured by Centrálny depozitár cenných papierov SR („CDCP SR“).
Five commercial banks cooperated with the state in the sale of the bonds, through which the bonds could be purchased. As part of the settlement of the primary sale of the government bond issues to citizens, the cooperating banks entered instructions into the system to credit their accounts with securities from those issues. They then distributed them to the accounts of the security owners – the investors. CDCP SR processed and settled the submitted instructions in the daily processing, according to the instructions entered by the cooperating banks. “The processing went smoothly and did not affect other services provided by the depository to its clients,” says Peter Nagy, the Director of the Operations Division in CDCP SR.
The first yields on government bonds will be received by government bondholders in April next year. According to the terms and conditions of the Citizens’ Government Bonds, the central depository is the administrator of both issues. “In practice, this means that we, in cooperation with the participants, will provide the Ministry of Finance of the Slovak Republic, represented by ARDAL, with activities related to the payment of proceeds, redemption of bonds and calculations related to the determination of proceeds from the above-mentioned issues,” explains Peter Nagy from CDCP SR.
The payment of proceeds and redemption of principal on government bonds for citizens will be made by bank transfer. “In the event that the bank does not provide the service of payment of proceeds, we recommend that investors inform the bank with which they have a owner account of their payment details in due time,” adds Peter Nagy from CDCP SR. Citizens can also obtain government bonds on the secondary market (e.g. through securities brokers). In such a case, if the security is registered in an owner account which is registered with any participant of the central depository, the payment details must be notified to the relevant participant in a timely manner. Further information on the reporting of payment details will be provided to owners by central depository participants. “If the owner has a sovereign bond credited to the owner’s account which is held directly in the registry of the CDCP SR, it is necessary for the owner to report the payment details to the central depository using the relevant form,“ adds Peter Nagy from CDCP SR. The form for reporting and changing payment details will be published by the central depository on its website shortly.
The issues of government bonds INVESTOR and PATRIOT were sold by the Ministry of Finance of the Slovak Republic represented by the Agency for Debt and Liquidity Management (ARDAL) from 3 to 6 March 2025. The government bonds could be purchased from five commercial banks – Československá obchodná banka, a. s., Slovenská sporiteľňa, a. s., Tatra banka, a. s., UniCredit Bank Czech Republic and Slovakia, a. s. and Všeobecná úverová banka, a. s. The registration of both issues and the settlement of the primary sale on the accounts of the cooperating banks was ensured by Centrálny depozitár cenných papierov SR as the only registrar of securities issues and the operator of the securities settlement system in Slovakia.
