tommy271
Forumer storico
Questions and Answers
Table of Contents
1. Anticipated Liability Management Transaction
2. New Bonds
3. Defeasance Assets
4. Questions Specific to the Options
1. Anticipated Liability Management Transaction 1.1. When is the liability management transaction expected to take place?
1.2. Which bonds will be included in the anticipated liability management transaction?
1.3. Why does the exchange offer not apply to all of the outstanding GGBs?
1.4. If the liability management transaction is launched can I participate with my current holdings of eligible GGBs?
1.5. What action should I take, if I have sold all or part of the holdings I had as of June 30, 2011?
1.6. Can eligible GGBs acquired post June 30, 2011 be included in the exchange?
1.7. What options can investors choose?
1.8. Can I split my holdings of eligible GGBs and choose different options for each of the parts?
1.9. Will participation in any of the options be restricted? If so, what happens if I elect that option and my participation gets prorated?
1.10. What would happen if the liability management transaction fails to reach the critical mass threshold of 90%?
1.11. In the anticipated liability management transaction, will accrued interest be paid or rolled into the New Bonds?
1.12. Will the anticipated liability management transaction be open to US holders?
1.13. Does Greece intend to launch a cash offer for its GGBs too?
1.14. If Greece is to launch a separate cash offer, what will be its timing?
1.15. Will a possible cash offer also include the eligible GGBs targeted in the exchange offer?
1.16. If Greece is to launch a cash offer, at what prices will it propose to buy back bonds?
1.17. How should my holdings be reported to my regulator?
1.18. What is the deadline for responding to my regulator with my holdings?
1.19. Can a private investor, non institutional participate into the PSI; E.g. An investor with eligible GGBs worth, say, 1mn euros; Were is this actually written on the documents; thx in advance.
1.20. What's the minimum size should we hold to be considered as "private volonteer"?
1.21. Is is possible to tender only a fraction of GGB's held as of June 2011, keeping the remaining as it is?
1.22. What is the current rate of participation up to now?
1.23. Will bond holders who will not participate be penalized in any way?
1.24. Will the claim on zero coupon bonds be par as in the other bonds for the purpose of this exchange?
1.25. Which options are available with regard to those securities which have matured prior to the date of the Anticipated Liability Management Transaction? Obviously those bonds could no longer be subject to a bond exchange - is the securities holder restricted to Option 2 for these securities?
1.26. How can Finland's demand for collateral affect the implementation of the exchange programme? What is the likely outcome of this conflict?
1.27. 1. Is the offer only referring to Institutionals ? 2. Is the offer only for Government Bonds or also Bond Loans
1.28. What happens to holders of the 3.9% 20-Aug 11 bond holder?ISIN: GR0114019442
1.29. If Greece intends to make a cash offer, as stated in 1.13 to 1.16 and if there is also the possibility, that an cash offer includes eligible GGBs (as stated in 1.15) is there any choice for someone who already opted for options 1-4 to change this and accept the cash offer?
1.30. If a parallel cash offer is launched, will participation in that cash offer be considered as part of the 90% participation target in the exchange offer? Can an investor who indicated intent to participate in the exchange to their regulator participate in the cash offer instead, once launched?
1.31. Could you please clarify the following information about the exchange: 1) What types of institutions are eligible for the tender of the bonds? Is it only European banks, asset managers, individuals, etc? 2) What would happen to the holdings of the institutions and individuals not eligible for the tender? Will they be forced into one of the options or end up holding untendered bonds? 3) Is 90% participation target is based on the outstanding amount or on the amount eligible for the tender?
1.32. What action should i take if my institution has NIL to report to our regulator. Please advise if there is another form, or how Annex IV can be completed in this case
1.33. Regarding the 90 percent threshold, in which way is dealt with the bond holdings of the ECB?
1.34. what is the scope of reporting group for each investor?
1.35. Could you please clarify if apart from the Credit Institutions, other types of investors as Institutional Investors (M/Fs, Insurance Cos, etc.) and Private Investors (local and foreign) should participate by the deadline of September 9th 2011?
1.36. Further to Q 1.19 , how non-institutional holders be invited to participate in the transaction?
1.37. re Q&A 1.17: If only the parent company shall respond and the options have to be chosen for the entire holdings: Can a subsidiary choose a different option than the option the parent company or another subsidiary chooses for a single GGB?
1.38. Being an Asset Management Company (regulated investor itself) administrating assets of other regulated investors in a german special fund: Under german law the Asset Manager has to take the decision regarding the GGBs. The Asset Manager is not allowed to ask the client (regulated investor). But the money of the fund comes from the client. Lets say the Asset Manager has own stock in GGB "XY" and has two special funds of two different regulated investors with holdings of GGB "XY": Who takes the decision which option will be chosen regarding GGB "XY". a) The Asset Manager - because he has to choose only one option for all "his" holdings of GGB "XY"? b) Each client for "his" fund - because he took the same decision for his other direct holdings (not indirect holdings via a special fund)? Solution a) would lead to strange results and disharmony between the Asset manager and the Investor. Solution b) would be a breach of th
1.39. Is a parent company able to take part in the transaction only for some of its consolidated and unconsolidated, regulated and unregulated entities?
1.40. Asset Management Companies what is the process for Asset Managers when they report their holdings? If each fund is a separate legal entity, are they supposed to do a fund by fund reporting or a global reporting at the Asset Management company level? Moreover an Asset Manager's decision can be overruled if there is a single investor in the fund. Are the regulators looking through the fund holdings of banks and Insco? The question is especially relevant in Germany/Austria where bonds are often booked in so called Spezialfonds (special funds) for regulatory/accounting reasons
1.41. I have to two questions concerning how to fill out the template from "Deutsche Bundesbank" in regard to the "Letter of Inquiry": 1. Do we not have to list bonds which are not on the List of Eligble GGBs? 2. What should we do if we hold one bond by more than one legal entity. Should we insert further lines?
1.42. Re 1.8 of Q&A: Is my understanding correct, that a) a holder can only decide to participate or not, b) if he decides to participate, he has to decide for the entire holdings but c) within his entire holdings he can choose different options for GGB "XY" and GGB "Z" and d) but he can not split the holdings of GGB "XY" in two parts and choose option 1 for one part and option 3 for the other?
1.43. how and when will the non-institutional holders be invited to participate ( see question 1.19)
1.44. Is it Obligatory to respond to the regulator? if not, will it be possible to participate later on in the offer?
1.45. we would like to know who is our local regulator?
1.46. Will private and institutional investors participate through their custodians or on their own?
1.47. If a bank (or any financial institution) is holding GGB on my behalf, does the bank have to report my holdings and I need to choose an option at this point? Thanks!
1.48. What happens with ECB holdings ? Are they going into the exchange ?
1.49. THE GREEK AUTHORITIES HAVE ASKED THEIR LOCAL PUBLIC PARTNERS THROUGH EACH FINANCE MINISTRY TO SEND A LETTER OF INQUIRY TO ALL THEIR DOMESTIC REGULATED INVESTORS, SO COULD YOU PLEASE PROVIDE US THE DETAILS OF THE SPANISH REGULATED INVESTORS. ALSO AS WE ACTING AS CUSTODIAN, ARE WE ABLE TO COMPLETE THE ANNEX IV ON BEHALF OF OUR CLIENTS OR THIS IS NOT POSSIBLE AS THE CLIENTS HAS DIRECTLY TO COMPLETE THE INFORMATION. REGARDS MANY THANKS
1.50. Dear Sir, The transaction involves 100% of the position of each holder? I we have differente holders: private banking holders is it possible be accepted only by some of them?
1.51. Dear Sir/Madam, I received the document from you which is about Eurobond issued by Hellenic Republic. I read that document but I was confused. Because we dont keep those eurobonds in our portfolio, there are just 2 of our customer holding the Eurobonds (GR0124032666- GR0114023485). I would appreciate if you could explain that do we need to do something? Thank you for your assistance with this matter. I look forward to your reply.
1.52. In relation to 1.6 can eligible GGBs acquired post June 30 2011 be included in the exchange if the reporting institution had no holding prior to June 30? What is the last day for reporting holding of eligible GGBs post 9th of September which would still be able to participate in the exchange offer.
1.53. Why are the Hellenic Railways bonds included among the eligible bonds for the transaction?
1.54. Referring to the confidential enquiry regarding holding, dated 25 Aug 11: 1- Holders answer is just at forecast level or it will be take into consideration during the next exchange offer? 2- The answer have to be sent to the "regulator": where can I find regulators contacts? 3- If bonds have been transferred after 30-jun-11 to other custodian, the position held will be considerate eligible for the exchange offer?
1.55. Reg the question 1.5, for Options 1,3,4, holders should deliver the same eligible GGBs.Theis means that theu should deliver the same ISIN? or just the same notional of eligible GGbs?
1.56. Hello, We are a German Investment Management Company and managing funds for institutional investors (no public funds). Can we decide differently about the participation for every (institutional) client? We appreciate your answer as soon as possible. Regards, Michaela Ecker
1.57. If we dont respond what will happen, meaning dont want to participate in the 4 options
1.58. Will current outstanding GGB zero coupopn bonds eligible to be exchanged for the NEW bonds, have the same par claim as other GGBs? i.e., 100.The answer to (1.24) is not clear.
1.59. relevant to 1.11: since the accrued interest is expected to be paid in cash, will there also be a refund in the tax interest kept? Will this take place in the date of the transaction?
1.60. If we choose an option before the 9/9/11 deadline, is it a binding commitment or just informative and an institution can change it's mind later on and not participate anymore?
1.61. If holders provide no reponse are they still eligilbe to participate in the eventual exchange offer
1.62. Is it correct, that regarding the voluntary liability managment transaction NO holdings of private investors are affected?
1.63. If a self regulated auxiliary Pension Fund is obliged to submit its participation to the PSI inquiry. If so, please state the regulator who will accept the inquiry.
1.64. For bonds in JPY, should we fill the common templates with principal amounts in euros or in JPY? Could you give me your answer before 2pm because we should send our response to the PSI before 3pm? Thank you
1.65. Until now all the corresponding communication is in English. As at the final stage you will offer this option to non institutional investors in Greece do you have any plans to translate all the necessary documentation in Greek (as this is part of the Greek law stating that all written communication with the customers must be Greek)?
1.66. Could you please clarify why bonds issued by Hellenic Railways are included in the list of eligible GGBs. While these bonds are guaranteed by the Hellenic Republic (and included in some Eurostat sovereign debt definitions) the bonds are legally corporate and not government bonds. I remember from the investor meeting in Frankfurt last Friday that a more detailed explanation was going to be made available on the Q&A web site. Thank you.
1.67. ON THE SCHEDULE 1 IT IS REQUIRED TO BE MENTIONED THE PRINCIPAL AMOUNT SOLD/TRANSFERRED SUBSEQUENT TO 30 JUNE 2011. IF A GGB HAS BEEN PLEDGED TO EUROSYSTEM AFTER 30 JUNE 2011 WE HAVE TO MENTIONED IT IN THIS COLUMN?
1.68. Can an investor currently not holding eligible Greek bonds purchase eligible bonds now (or at some point in the future prior to the exchange) and participate in the exchange. The answer to question 1.4 implies no, but in question 1.6 implies yes but only if one already has holdings. Please clarify.
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2. New Bonds 2.1. Will the New Bonds be listed on a regulated European Stock Exchange?
2.2. Will the New Bonds with trading restrictions also be listed?
2.3. Will the New Bonds be freely tradable from day one?
2.4. Please elaborate further on these trading restrictions?
2.5. Will the New Bonds be deliverable against CDS contracts?
2.6. Will the New Bonds be eligible for repo with the ECB?
2.7. Can New Bonds be transferred to 3rd parties other than ECB as part of the repo or other collateral arrangements?
2.8. Will the New Bonds be offered with coupons other than fixed rate coupons?
2.9. How will the interest rates of the new bonds be determined?
2.10. Will the New Bonds be offered in currencies other than Euro?
2.11. If the New Bonds will be issued only in Euros, what exchange rate will be used when exchanging eligible GGBs issued in another currency?
2.12. Will the New Bonds be rated?
2.13. What are the Events of Default of the New Bonds?
2.14. Will there be Collective Action Clauses in the New Bonds?
2.15. What will be the law the New Bonds will be issued under?
2.16. Can the New Bonds be stripped?
2.17. Where can I find the spreadsheet which is referred to under question 2.9? Unfortunately, the document section contains no such sheet.
2.18. How can the New Par Bonds and the Rollover Par Bonds be ECB-deliverable once their principal obligations are defeased on the issue date in full? Are the remaining stripped coupons ECB-deliverable?
2.19. For the bonds having matured on 20th August, we understand that Option 2 applies ; theoretically the New Bond should have started on the 1st of July. What is the specific schedule for this case (ie on which date are the investors supposed to give the correspondent cash to the Hellenic Republic and what is the maturity date of the new bond).
2.20. Option 1 & 3 : we understand that in case of default, the "New Bond" splits into (i) a "Defeasance Bond" and (ii) a claim against the Hellenic Republic equal to the principal amount of the New Bond plus accrued but unpaid interest, less the value of the "Defeasance Bond" computed at the initial rate of the ZC held by the trust ?
2.21. Is it possible to choose different options for a bond (ie split a line between several options) ?
2.22. Do the non traded bonds join the ISIN of the traded bonds at the end of the non trading period ?
2.23. At the end of the trading restriction period, do you plan a merge between traded and non traded bonds ?
2.24. Is it possible to change the accounting category of a "non traded bond" at the end of the trading restriction period ?
2.25. As far as trading restrictions post exchange are concerned, yesterday I asked what would be the favourable treatment received in case that we choose the non trading option......So far I did not receive any answer from you. Apologizes for repetition, Thanks a lot
2.26. How does the ECB view the fact that the principal obligations of the New Par Bonds and the Rollover Par Bonds are defeased on the issue date in full? Does that affect the ECB-deliverability in any way or does the ECB accept the New Par Bonds and the Rollover Par Bonds as any other European government bonds? Please provide a legal opinion to that respect.
2.27. for options 3 and 4, the exchange value of the bond is a discount of 20% but the par value remains 100%. Am i correct in my assumption? Will the interest accrue on 80% of par or 100% of par?
2.28. Apart from the fact that restricted instruments are not tradable, what is the difference between both? Why should an investor choose restricted ones if the conditions are identical?
2.29. Dear Sir, I am thinking about option 1 and I have some questions: The 30 years bond that I will receive have any trading restrinction ? The investmente policy of the fund do not aloud to have maturities over 5 years. The buy-back will be at the same time as the transaction? It is going to be possible to elect between the transaction or the buy back ? Best Regards,
2.30. In the implementation proccess of option 2. How will current GGBs that will finaly participate in the rollover via option 2, will differ from the ones that they will not. Is there any thought of applying any extra ISIN ?
2.31. Under option 1, in case of Greece's default in the following years, in my understanding it is that holders of the new par bond will receive the 100% of its face amount (1.000) at the maturity of the bond in 30 years. If at the same time, Greece is forced to leave the Euro area and return to drachma, the amount that the Trust will pay to the bondholders, will it be in Euro or in Drachmas?
2.32. If we choose option 1 the maturity date of the New Bonds would be a date in the year 2041 no matter what the issuance date of the bonds we had was, or it would be the initial issuance date plus 30 years?
2.33. Yesterday I asked about the non-tradable status, but I have no answer. Anyway, I thought (because I had a missunderstanding) that bonds for options 1, 3 and 4 had always a first period where non-tradable. But today I heard that I can choose, tradable since the first day, or non-tradable for a first period. Could I have an answer please? I will appreciate. Thank you in advance
2.34. Can I have the debt profile maturity of general government debt pre July 21 and post July 21, according to IIF proposal?
2.35. Since the period has been exzended, has the private investors have to answer to the current request or must they wait for the final offer to come?
2.36. What will be the expected Ratings of the new bonds? Will they be the same for all options or will the Rating agencies differ between the options?
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3. Defeasance Assets 3.1. What will be the Defeasance Assets for the New Bonds?
3.2. How does the Defeasance Assets release mechanisms work?
3.3. Are there any early release trigger events for the Defeasance Assets?
3.4. Are Greece's obligations for principal repayment defeased in full by the delivery of the Defeasance Assets?
3.5. In the event of a default what is my claim against Greece?
3.6. Will there be circumstances where the Defeasance Assets would need to be valued and how will this valuation take place?
3.7. What happens if the national parliaments asked to decide on the extension of the EFSF required for the purchase of the defeasance assets do not consent to this extension or ask for modifications? Will I continue to be bound to my declaration made with regard to the current inquiry?
3.8. Is there one common trust for all options, or a specific trust for each option ?
3.9. On which basis will the healthcare zeros be converted into new securities ? On a notional for notional basis ?
3.10. Are all bonds, that will be used as collateral for the New Par Bond, zero-coupon papers? Where does the EFSF get these zero-coupon bonds regarding the fact that no significant amount of AAA-Zeros is currently outstanding?
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4. Questions Specific to the Options 4.1. How will Option 2 work in practice?
4.2. Under Option 2, will the 30 year tenor of my commitment start from the day I agree to the Committed Financing Facility or from the maturity of my eligible GGB?
4.3. If I accept Option 2, will I be able to sell my eligible GGBs for which I have accepted such option? Or will I have to hold them to maturity?
4.4. If after selecting Option 2, I sell my eligible GGBs, will the financing commitment move to the new owner of the eligible GGBs?
4.5. Under Option 2, what happens to my commitment if an Event of Default occurs before the commitment date?
4.6. Under Option 2, in which circumstances is my commitment invalidated?
4.7. Under Option 2, what happens if my commitment is drawn before my current bonds are redeemed and an Event of Default occurs?
4.8. Can you explain Option 4 in relation to the other Options?
4.9. If I accept to participate in the anticipated liability management transaction, will I also receive recovery proceeds in addition to the New Bonds?
4.10. Option 4: Please explain the rationale for linking the Early release of Trust Assets to ISDA credit default swap determinations.
4.11. Regarding option 4, is there an intention to include bonds maturing after 1 January 2014?
4.12. Under Option 2 commitment starts at the beginning of the quarter eligible GGBs mature. So if we hold bonds that mature end of the quarter this means we have double exposure for those holdings for the period from commitment till our bonds mature?And what happens if we have an event of default during this period?
4.13. The Hellenic Republic and the three Joint Arrangers and Structuring Coordinators should definitely work on a FRN solution under Options 1 and 2.
4.14. Option 2 would prove to be more interesting if it included a right on the Rollover Par Bonds Defeasance Assets right away from the day of choosing and committing to the option. The Hellenic Republic and the three Joint Arrangers and Structuring Coordinators should definitely work on such a solution.
4.15. I dont understand for option 4, that it is anticipated that at this stage that this option will be available for GGB maturing prior 01/2014. Can I choose option 4 for all my holdings, both for ones prior and after 2014, at this stage?
4.16. should investors report (I)legal title holding (regardless of beneficial interest); (ii) exposure position previously reported to regulator (in which case how this should be reported if such exposure was synthetic); (iii) beneficial ownership in specific bonds (regardless of legal title); or (iv) other
4.17. Reagarding Opion 4, the calculation of the recovery is not clear. Did I get the recovery for the whole bond or only for a part of the bond (Recovery * 0.8 or Recovery *0.8*0.6)?
4.18. We currently have foreign investors who hold GGBs. Who do they have to contact should they wish to participate in the exchange. (For example clents of a Spanish Bank currently hold GGBs)?
4.19. Option 2: will the ISIN of the existing GGbs, that bondholders have agreed to rollover, change?
4.20. Insures Option 4 80% of realized loss (cap 40%)? Can you explain on what Notional investors receive recovery rate under option 4? E.g. Notional *RR plus 80% of Notional minus RR, max 40% or (Notional minus Early Release Amount)*RR plus 80% of Notional minus RR, max 40%
4.21. For Option 2, are the old GGBs entitlted for coupon payment prior to the maturity date?
4.22. How is the actual amount calculated in case of an immediate default of Greece? As far as the xls-sheets and the research of DB pointed out, it should be 51.2%. But as of discussions with BNP the collateral of Option 4 is more an insurance where you get 80% of the loss - leading to an amount of 64%. Please clarify! Thanks.
4.23. I represent a bank in Israel where we hold various bonds for customers. We were informed by Euroclear that we have an option to disclose holding to our regulators. Does this refer to customer's holdings, or is it only for proprietary accounts? What is the significance of disclosing holdings to our regulator?
4.24. In the pricing spreadsheet for option 4, why only accrued interest on 60% of the principal is included in the default scenario calculation if Greece is supposed to pay interest on 100%?
4.25. Can you explain the the npv calculation of the existing bonds under the choice of options 3 and 4. How does one get to a discounted on an npv basis of 21%?
4.26. I have submitted a question related to the pricing of Option 4 a week ago, still awaiting a response. The published spreadsheet considers accrued interest only on 60% of the principal, not 100%, in a default scenario. Can you please explain me, why? I would expect that Greece owns interest on 100% of the outstanding amount.
4.27. In your answer to 4.22, you refer to a "Trigger Event" which will not result in acceleration of the New Bonds. Is this different from the "Early Release Trigger Event" explicitly defined in the Description of Options? What would constitute such a "Trigger Event?" - thanks
4.28. In the example spreadsheet found under your "Documents Section" the Coupon Rate is different for all the periods, compared with the IIF offer dated 21 July 2011. Is it because the mid-swap rates used are different? Is the discount rate of 9% fixed?
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Table of Contents1. Anticipated Liability Management Transaction
2. New Bonds
3. Defeasance Assets
4. Questions Specific to the Options
1. Anticipated Liability Management Transaction 1.1. When is the liability management transaction expected to take place?
1.2. Which bonds will be included in the anticipated liability management transaction?
1.3. Why does the exchange offer not apply to all of the outstanding GGBs?
1.4. If the liability management transaction is launched can I participate with my current holdings of eligible GGBs?
1.5. What action should I take, if I have sold all or part of the holdings I had as of June 30, 2011?
1.6. Can eligible GGBs acquired post June 30, 2011 be included in the exchange?
1.7. What options can investors choose?
1.8. Can I split my holdings of eligible GGBs and choose different options for each of the parts?
1.9. Will participation in any of the options be restricted? If so, what happens if I elect that option and my participation gets prorated?
1.10. What would happen if the liability management transaction fails to reach the critical mass threshold of 90%?
1.11. In the anticipated liability management transaction, will accrued interest be paid or rolled into the New Bonds?
1.12. Will the anticipated liability management transaction be open to US holders?
1.13. Does Greece intend to launch a cash offer for its GGBs too?
1.14. If Greece is to launch a separate cash offer, what will be its timing?
1.15. Will a possible cash offer also include the eligible GGBs targeted in the exchange offer?
1.16. If Greece is to launch a cash offer, at what prices will it propose to buy back bonds?
1.17. How should my holdings be reported to my regulator?
1.18. What is the deadline for responding to my regulator with my holdings?
1.19. Can a private investor, non institutional participate into the PSI; E.g. An investor with eligible GGBs worth, say, 1mn euros; Were is this actually written on the documents; thx in advance.
1.20. What's the minimum size should we hold to be considered as "private volonteer"?
1.21. Is is possible to tender only a fraction of GGB's held as of June 2011, keeping the remaining as it is?
1.22. What is the current rate of participation up to now?
1.23. Will bond holders who will not participate be penalized in any way?
1.24. Will the claim on zero coupon bonds be par as in the other bonds for the purpose of this exchange?
1.25. Which options are available with regard to those securities which have matured prior to the date of the Anticipated Liability Management Transaction? Obviously those bonds could no longer be subject to a bond exchange - is the securities holder restricted to Option 2 for these securities?
1.26. How can Finland's demand for collateral affect the implementation of the exchange programme? What is the likely outcome of this conflict?
1.27. 1. Is the offer only referring to Institutionals ? 2. Is the offer only for Government Bonds or also Bond Loans
1.28. What happens to holders of the 3.9% 20-Aug 11 bond holder?ISIN: GR0114019442
1.29. If Greece intends to make a cash offer, as stated in 1.13 to 1.16 and if there is also the possibility, that an cash offer includes eligible GGBs (as stated in 1.15) is there any choice for someone who already opted for options 1-4 to change this and accept the cash offer?
1.30. If a parallel cash offer is launched, will participation in that cash offer be considered as part of the 90% participation target in the exchange offer? Can an investor who indicated intent to participate in the exchange to their regulator participate in the cash offer instead, once launched?
1.31. Could you please clarify the following information about the exchange: 1) What types of institutions are eligible for the tender of the bonds? Is it only European banks, asset managers, individuals, etc? 2) What would happen to the holdings of the institutions and individuals not eligible for the tender? Will they be forced into one of the options or end up holding untendered bonds? 3) Is 90% participation target is based on the outstanding amount or on the amount eligible for the tender?
1.32. What action should i take if my institution has NIL to report to our regulator. Please advise if there is another form, or how Annex IV can be completed in this case
1.33. Regarding the 90 percent threshold, in which way is dealt with the bond holdings of the ECB?
1.34. what is the scope of reporting group for each investor?
1.35. Could you please clarify if apart from the Credit Institutions, other types of investors as Institutional Investors (M/Fs, Insurance Cos, etc.) and Private Investors (local and foreign) should participate by the deadline of September 9th 2011?
1.36. Further to Q 1.19 , how non-institutional holders be invited to participate in the transaction?
1.37. re Q&A 1.17: If only the parent company shall respond and the options have to be chosen for the entire holdings: Can a subsidiary choose a different option than the option the parent company or another subsidiary chooses for a single GGB?
1.38. Being an Asset Management Company (regulated investor itself) administrating assets of other regulated investors in a german special fund: Under german law the Asset Manager has to take the decision regarding the GGBs. The Asset Manager is not allowed to ask the client (regulated investor). But the money of the fund comes from the client. Lets say the Asset Manager has own stock in GGB "XY" and has two special funds of two different regulated investors with holdings of GGB "XY": Who takes the decision which option will be chosen regarding GGB "XY". a) The Asset Manager - because he has to choose only one option for all "his" holdings of GGB "XY"? b) Each client for "his" fund - because he took the same decision for his other direct holdings (not indirect holdings via a special fund)? Solution a) would lead to strange results and disharmony between the Asset manager and the Investor. Solution b) would be a breach of th
1.39. Is a parent company able to take part in the transaction only for some of its consolidated and unconsolidated, regulated and unregulated entities?
1.40. Asset Management Companies what is the process for Asset Managers when they report their holdings? If each fund is a separate legal entity, are they supposed to do a fund by fund reporting or a global reporting at the Asset Management company level? Moreover an Asset Manager's decision can be overruled if there is a single investor in the fund. Are the regulators looking through the fund holdings of banks and Insco? The question is especially relevant in Germany/Austria where bonds are often booked in so called Spezialfonds (special funds) for regulatory/accounting reasons
1.41. I have to two questions concerning how to fill out the template from "Deutsche Bundesbank" in regard to the "Letter of Inquiry": 1. Do we not have to list bonds which are not on the List of Eligble GGBs? 2. What should we do if we hold one bond by more than one legal entity. Should we insert further lines?
1.42. Re 1.8 of Q&A: Is my understanding correct, that a) a holder can only decide to participate or not, b) if he decides to participate, he has to decide for the entire holdings but c) within his entire holdings he can choose different options for GGB "XY" and GGB "Z" and d) but he can not split the holdings of GGB "XY" in two parts and choose option 1 for one part and option 3 for the other?
1.43. how and when will the non-institutional holders be invited to participate ( see question 1.19)
1.44. Is it Obligatory to respond to the regulator? if not, will it be possible to participate later on in the offer?
1.45. we would like to know who is our local regulator?
1.46. Will private and institutional investors participate through their custodians or on their own?
1.47. If a bank (or any financial institution) is holding GGB on my behalf, does the bank have to report my holdings and I need to choose an option at this point? Thanks!
1.48. What happens with ECB holdings ? Are they going into the exchange ?
1.49. THE GREEK AUTHORITIES HAVE ASKED THEIR LOCAL PUBLIC PARTNERS THROUGH EACH FINANCE MINISTRY TO SEND A LETTER OF INQUIRY TO ALL THEIR DOMESTIC REGULATED INVESTORS, SO COULD YOU PLEASE PROVIDE US THE DETAILS OF THE SPANISH REGULATED INVESTORS. ALSO AS WE ACTING AS CUSTODIAN, ARE WE ABLE TO COMPLETE THE ANNEX IV ON BEHALF OF OUR CLIENTS OR THIS IS NOT POSSIBLE AS THE CLIENTS HAS DIRECTLY TO COMPLETE THE INFORMATION. REGARDS MANY THANKS
1.50. Dear Sir, The transaction involves 100% of the position of each holder? I we have differente holders: private banking holders is it possible be accepted only by some of them?
1.51. Dear Sir/Madam, I received the document from you which is about Eurobond issued by Hellenic Republic. I read that document but I was confused. Because we dont keep those eurobonds in our portfolio, there are just 2 of our customer holding the Eurobonds (GR0124032666- GR0114023485). I would appreciate if you could explain that do we need to do something? Thank you for your assistance with this matter. I look forward to your reply.
1.52. In relation to 1.6 can eligible GGBs acquired post June 30 2011 be included in the exchange if the reporting institution had no holding prior to June 30? What is the last day for reporting holding of eligible GGBs post 9th of September which would still be able to participate in the exchange offer.
1.53. Why are the Hellenic Railways bonds included among the eligible bonds for the transaction?
1.54. Referring to the confidential enquiry regarding holding, dated 25 Aug 11: 1- Holders answer is just at forecast level or it will be take into consideration during the next exchange offer? 2- The answer have to be sent to the "regulator": where can I find regulators contacts? 3- If bonds have been transferred after 30-jun-11 to other custodian, the position held will be considerate eligible for the exchange offer?
1.55. Reg the question 1.5, for Options 1,3,4, holders should deliver the same eligible GGBs.Theis means that theu should deliver the same ISIN? or just the same notional of eligible GGbs?
1.56. Hello, We are a German Investment Management Company and managing funds for institutional investors (no public funds). Can we decide differently about the participation for every (institutional) client? We appreciate your answer as soon as possible. Regards, Michaela Ecker
1.57. If we dont respond what will happen, meaning dont want to participate in the 4 options
1.58. Will current outstanding GGB zero coupopn bonds eligible to be exchanged for the NEW bonds, have the same par claim as other GGBs? i.e., 100.The answer to (1.24) is not clear.
1.59. relevant to 1.11: since the accrued interest is expected to be paid in cash, will there also be a refund in the tax interest kept? Will this take place in the date of the transaction?
1.60. If we choose an option before the 9/9/11 deadline, is it a binding commitment or just informative and an institution can change it's mind later on and not participate anymore?
1.61. If holders provide no reponse are they still eligilbe to participate in the eventual exchange offer
1.62. Is it correct, that regarding the voluntary liability managment transaction NO holdings of private investors are affected?
1.63. If a self regulated auxiliary Pension Fund is obliged to submit its participation to the PSI inquiry. If so, please state the regulator who will accept the inquiry.
1.64. For bonds in JPY, should we fill the common templates with principal amounts in euros or in JPY? Could you give me your answer before 2pm because we should send our response to the PSI before 3pm? Thank you
1.65. Until now all the corresponding communication is in English. As at the final stage you will offer this option to non institutional investors in Greece do you have any plans to translate all the necessary documentation in Greek (as this is part of the Greek law stating that all written communication with the customers must be Greek)?
1.66. Could you please clarify why bonds issued by Hellenic Railways are included in the list of eligible GGBs. While these bonds are guaranteed by the Hellenic Republic (and included in some Eurostat sovereign debt definitions) the bonds are legally corporate and not government bonds. I remember from the investor meeting in Frankfurt last Friday that a more detailed explanation was going to be made available on the Q&A web site. Thank you.
1.67. ON THE SCHEDULE 1 IT IS REQUIRED TO BE MENTIONED THE PRINCIPAL AMOUNT SOLD/TRANSFERRED SUBSEQUENT TO 30 JUNE 2011. IF A GGB HAS BEEN PLEDGED TO EUROSYSTEM AFTER 30 JUNE 2011 WE HAVE TO MENTIONED IT IN THIS COLUMN?
1.68. Can an investor currently not holding eligible Greek bonds purchase eligible bonds now (or at some point in the future prior to the exchange) and participate in the exchange. The answer to question 1.4 implies no, but in question 1.6 implies yes but only if one already has holdings. Please clarify.
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2. New Bonds 2.1. Will the New Bonds be listed on a regulated European Stock Exchange?
2.2. Will the New Bonds with trading restrictions also be listed?
2.3. Will the New Bonds be freely tradable from day one?
2.4. Please elaborate further on these trading restrictions?
2.5. Will the New Bonds be deliverable against CDS contracts?
2.6. Will the New Bonds be eligible for repo with the ECB?
2.7. Can New Bonds be transferred to 3rd parties other than ECB as part of the repo or other collateral arrangements?
2.8. Will the New Bonds be offered with coupons other than fixed rate coupons?
2.9. How will the interest rates of the new bonds be determined?
2.10. Will the New Bonds be offered in currencies other than Euro?
2.11. If the New Bonds will be issued only in Euros, what exchange rate will be used when exchanging eligible GGBs issued in another currency?
2.12. Will the New Bonds be rated?
2.13. What are the Events of Default of the New Bonds?
2.14. Will there be Collective Action Clauses in the New Bonds?
2.15. What will be the law the New Bonds will be issued under?
2.16. Can the New Bonds be stripped?
2.17. Where can I find the spreadsheet which is referred to under question 2.9? Unfortunately, the document section contains no such sheet.
2.18. How can the New Par Bonds and the Rollover Par Bonds be ECB-deliverable once their principal obligations are defeased on the issue date in full? Are the remaining stripped coupons ECB-deliverable?
2.19. For the bonds having matured on 20th August, we understand that Option 2 applies ; theoretically the New Bond should have started on the 1st of July. What is the specific schedule for this case (ie on which date are the investors supposed to give the correspondent cash to the Hellenic Republic and what is the maturity date of the new bond).
2.20. Option 1 & 3 : we understand that in case of default, the "New Bond" splits into (i) a "Defeasance Bond" and (ii) a claim against the Hellenic Republic equal to the principal amount of the New Bond plus accrued but unpaid interest, less the value of the "Defeasance Bond" computed at the initial rate of the ZC held by the trust ?
2.21. Is it possible to choose different options for a bond (ie split a line between several options) ?
2.22. Do the non traded bonds join the ISIN of the traded bonds at the end of the non trading period ?
2.23. At the end of the trading restriction period, do you plan a merge between traded and non traded bonds ?
2.24. Is it possible to change the accounting category of a "non traded bond" at the end of the trading restriction period ?
2.25. As far as trading restrictions post exchange are concerned, yesterday I asked what would be the favourable treatment received in case that we choose the non trading option......So far I did not receive any answer from you. Apologizes for repetition, Thanks a lot
2.26. How does the ECB view the fact that the principal obligations of the New Par Bonds and the Rollover Par Bonds are defeased on the issue date in full? Does that affect the ECB-deliverability in any way or does the ECB accept the New Par Bonds and the Rollover Par Bonds as any other European government bonds? Please provide a legal opinion to that respect.
2.27. for options 3 and 4, the exchange value of the bond is a discount of 20% but the par value remains 100%. Am i correct in my assumption? Will the interest accrue on 80% of par or 100% of par?
2.28. Apart from the fact that restricted instruments are not tradable, what is the difference between both? Why should an investor choose restricted ones if the conditions are identical?
2.29. Dear Sir, I am thinking about option 1 and I have some questions: The 30 years bond that I will receive have any trading restrinction ? The investmente policy of the fund do not aloud to have maturities over 5 years. The buy-back will be at the same time as the transaction? It is going to be possible to elect between the transaction or the buy back ? Best Regards,
2.30. In the implementation proccess of option 2. How will current GGBs that will finaly participate in the rollover via option 2, will differ from the ones that they will not. Is there any thought of applying any extra ISIN ?
2.31. Under option 1, in case of Greece's default in the following years, in my understanding it is that holders of the new par bond will receive the 100% of its face amount (1.000) at the maturity of the bond in 30 years. If at the same time, Greece is forced to leave the Euro area and return to drachma, the amount that the Trust will pay to the bondholders, will it be in Euro or in Drachmas?
2.32. If we choose option 1 the maturity date of the New Bonds would be a date in the year 2041 no matter what the issuance date of the bonds we had was, or it would be the initial issuance date plus 30 years?
2.33. Yesterday I asked about the non-tradable status, but I have no answer. Anyway, I thought (because I had a missunderstanding) that bonds for options 1, 3 and 4 had always a first period where non-tradable. But today I heard that I can choose, tradable since the first day, or non-tradable for a first period. Could I have an answer please? I will appreciate. Thank you in advance
2.34. Can I have the debt profile maturity of general government debt pre July 21 and post July 21, according to IIF proposal?
2.35. Since the period has been exzended, has the private investors have to answer to the current request or must they wait for the final offer to come?
2.36. What will be the expected Ratings of the new bonds? Will they be the same for all options or will the Rating agencies differ between the options?
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3. Defeasance Assets 3.1. What will be the Defeasance Assets for the New Bonds?
3.2. How does the Defeasance Assets release mechanisms work?
3.3. Are there any early release trigger events for the Defeasance Assets?
3.4. Are Greece's obligations for principal repayment defeased in full by the delivery of the Defeasance Assets?
3.5. In the event of a default what is my claim against Greece?
3.6. Will there be circumstances where the Defeasance Assets would need to be valued and how will this valuation take place?
3.7. What happens if the national parliaments asked to decide on the extension of the EFSF required for the purchase of the defeasance assets do not consent to this extension or ask for modifications? Will I continue to be bound to my declaration made with regard to the current inquiry?
3.8. Is there one common trust for all options, or a specific trust for each option ?
3.9. On which basis will the healthcare zeros be converted into new securities ? On a notional for notional basis ?
3.10. Are all bonds, that will be used as collateral for the New Par Bond, zero-coupon papers? Where does the EFSF get these zero-coupon bonds regarding the fact that no significant amount of AAA-Zeros is currently outstanding?
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4. Questions Specific to the Options 4.1. How will Option 2 work in practice?
4.2. Under Option 2, will the 30 year tenor of my commitment start from the day I agree to the Committed Financing Facility or from the maturity of my eligible GGB?
4.3. If I accept Option 2, will I be able to sell my eligible GGBs for which I have accepted such option? Or will I have to hold them to maturity?
4.4. If after selecting Option 2, I sell my eligible GGBs, will the financing commitment move to the new owner of the eligible GGBs?
4.5. Under Option 2, what happens to my commitment if an Event of Default occurs before the commitment date?
4.6. Under Option 2, in which circumstances is my commitment invalidated?
4.7. Under Option 2, what happens if my commitment is drawn before my current bonds are redeemed and an Event of Default occurs?
4.8. Can you explain Option 4 in relation to the other Options?
4.9. If I accept to participate in the anticipated liability management transaction, will I also receive recovery proceeds in addition to the New Bonds?
4.10. Option 4: Please explain the rationale for linking the Early release of Trust Assets to ISDA credit default swap determinations.
4.11. Regarding option 4, is there an intention to include bonds maturing after 1 January 2014?
4.12. Under Option 2 commitment starts at the beginning of the quarter eligible GGBs mature. So if we hold bonds that mature end of the quarter this means we have double exposure for those holdings for the period from commitment till our bonds mature?And what happens if we have an event of default during this period?
4.13. The Hellenic Republic and the three Joint Arrangers and Structuring Coordinators should definitely work on a FRN solution under Options 1 and 2.
4.14. Option 2 would prove to be more interesting if it included a right on the Rollover Par Bonds Defeasance Assets right away from the day of choosing and committing to the option. The Hellenic Republic and the three Joint Arrangers and Structuring Coordinators should definitely work on such a solution.
4.15. I dont understand for option 4, that it is anticipated that at this stage that this option will be available for GGB maturing prior 01/2014. Can I choose option 4 for all my holdings, both for ones prior and after 2014, at this stage?
4.16. should investors report (I)legal title holding (regardless of beneficial interest); (ii) exposure position previously reported to regulator (in which case how this should be reported if such exposure was synthetic); (iii) beneficial ownership in specific bonds (regardless of legal title); or (iv) other
4.17. Reagarding Opion 4, the calculation of the recovery is not clear. Did I get the recovery for the whole bond or only for a part of the bond (Recovery * 0.8 or Recovery *0.8*0.6)?
4.18. We currently have foreign investors who hold GGBs. Who do they have to contact should they wish to participate in the exchange. (For example clents of a Spanish Bank currently hold GGBs)?
4.19. Option 2: will the ISIN of the existing GGbs, that bondholders have agreed to rollover, change?
4.20. Insures Option 4 80% of realized loss (cap 40%)? Can you explain on what Notional investors receive recovery rate under option 4? E.g. Notional *RR plus 80% of Notional minus RR, max 40% or (Notional minus Early Release Amount)*RR plus 80% of Notional minus RR, max 40%
4.21. For Option 2, are the old GGBs entitlted for coupon payment prior to the maturity date?
4.22. How is the actual amount calculated in case of an immediate default of Greece? As far as the xls-sheets and the research of DB pointed out, it should be 51.2%. But as of discussions with BNP the collateral of Option 4 is more an insurance where you get 80% of the loss - leading to an amount of 64%. Please clarify! Thanks.
4.23. I represent a bank in Israel where we hold various bonds for customers. We were informed by Euroclear that we have an option to disclose holding to our regulators. Does this refer to customer's holdings, or is it only for proprietary accounts? What is the significance of disclosing holdings to our regulator?
4.24. In the pricing spreadsheet for option 4, why only accrued interest on 60% of the principal is included in the default scenario calculation if Greece is supposed to pay interest on 100%?
4.25. Can you explain the the npv calculation of the existing bonds under the choice of options 3 and 4. How does one get to a discounted on an npv basis of 21%?
4.26. I have submitted a question related to the pricing of Option 4 a week ago, still awaiting a response. The published spreadsheet considers accrued interest only on 60% of the principal, not 100%, in a default scenario. Can you please explain me, why? I would expect that Greece owns interest on 100% of the outstanding amount.
4.27. In your answer to 4.22, you refer to a "Trigger Event" which will not result in acceleration of the New Bonds. Is this different from the "Early Release Trigger Event" explicitly defined in the Description of Options? What would constitute such a "Trigger Event?" - thanks
4.28. In the example spreadsheet found under your "Documents Section" the Coupon Rate is different for all the periods, compared with the IIF offer dated 21 July 2011. Is it because the mid-swap rates used are different? Is the discount rate of 9% fixed?
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, mi sembra lo stesso di luglio.
Si sale, ma con volumi non ancora entusiasmanti.