Savings notes issued by the Government of the Republic of Lithuania are debt securities dedicated to individuals and non-profit businesses. The procedure for distributing savings notes is specified in accordance with the Rules on Issue and Circulation of Securities of the Government of Lithuania, Taking Loans on Behalf of the State and Signature of Other Debt Instruments approved by the Government of the Republic of Lithuania.
Savings notes are not permitted for public trading and secondary circulation is allowed only between Nasdaq CSD participants that have signed agreements with the issuer. Savings notes will not be transferred and settled in T2S (i.e. non-T2S eligible instrument) and will be registered, maintained, and settled only in the core CSD system..
Savings notes are distributed during periods determined by the issuer in advance. ISIN code is assigned to every issue of savings notes. During distribution period the participant Nasdaq CSD will send the settlement instruction to settle distributed savings notes in the core CSD system.
It is possible for the investor to sell back savings notes before the maturity date. The dates of early savings notes redemption and corresponding early redemption request deadlines are indicated in the conditions of every issue. By the investor request the participant of Depository will submit the settlement instruction to Nasdaq CSD for early redemption according to early redemption schedule. Early redemption settlement instruction will be settled in the core CSD system on intended settlement day.
Early redemption of savings notes may be carried out on interest (coupon) payment date. If the investor submits an application to the participant of Nasdaq CSD for savings notes’ early redemption on the interest payment date, he will receive only the price of early redemption.
Redemption of savings notes and interest (coupon) payment will be executed as a corporate action event and follow the standard corporate action settlement process in Depend. Interest payment schedule and redemption details of each savings notes issue are indicated in its conditions and are stored in Depend.
Nasdaq CSD will be acting as the issuer CSD for savings notes. Settlement of savings notes follows the Lithuanian statutory calendar. Savings notes will be accounted for and settled in the Lithuanian SSS.