Winners in the first auction of the Pilot Auction Facility took hold of a series of puttable bonds (PAFERNs) which can be redeemed annually for five years. This timileine and Q&A highlight the steps necessary to exercise the fifth serie of PAFERN: ISIN XS1278897910
|Sep. 1, 2020
|Sep. 30, 2020
|Oct. 15, 2020
|Nov. 5, 2020
|Nov. 13, 2020
|Nov. 30, 2020
|First day for Noteholders to deliver a Final Redemption Notice, including identification of CERs for the First Check, through Clearing System.
|Deadline for Noteholders to deliver (i) a Final Redemption Notice, including identification of CERs for the First Check, through Clearing System; and (ii) the EHS Audit Report(s) to the Verification Agent.
|Deadline for Verification Agent to qualify CERs at First Check and send confirmation to Noteholders.
|Deadline for Noteholders to transfer Qualifying CERs from First Check to specified Verification Agent’s CER Account.
|Deadline for Verification Agent to qualify CERs at Second Check and send confirmation to the Global Agent, the Calculation Agent and the Bank.
|Final Redemption Notice Deadline
|Sep. 30, 2020
|Nov. 30, 2020
|Eligible Issuance Date
|Any date between and including Apr. 1, 2019 and Sep. 30, 2020
|Eligible Monitoring Period start date
|Any date on or after the Auction Date (Jul. 15, 2015)
DISCLAIMER: This Q&A has been prepared by the PAF Secretariat to assist Noteholders in locating in the Final Terms relevant information about the PAFERNs redemption process. The Final Terms remains the definitive binding document on Noteholders and the Issuer. The Final Terms can be found on this webpage: http://www.pilotauctionfacility.org/content/first-auction-paferns
- Can you please clarify the eligible monitoring period dates, issuance dates, deadline for the Final Redemption Notice, and Maturity date?
The information can be found in section D: “Eligible Generation / Issuance Period” of this webpage:http://www.pilotauctionfacility.org/content/first-auction-criteria
- Are CERs generated from a project with a monitoring period starting prior to July 15, 2015 but issued after the auction date eligible?
Eligible credits must come from monitoring reports with a start date beginning on or after July 15, 2015. Credits from projects with a monitoring report beginning before this date are not eligible. Projects with continuous monitoring of emission reductions both prior to and after July 15, 2015 would have to create a monitoring period such that the monitoring report start date begins on or after July 15, 2015.
- What exactly is the courtesy notice of Notice Period and how will the IBRD send it to Noteholders?
The courtesy notice is a reminder to noteholders to make the appropriate arrangements with their custodian banks in order to deliver the Final Redemption Notice. Citibank will send the courtesy notice via the clearing systems to the noteholder’s custodian bank. The method of transmittal between the custodian bank and the noteholder should be discussed between these two parties.
- Is the Final Redemption Notice form the one located in Annex A-16 of Bond Terms? If yes, can you please clarify whether the “Clearing System Blocking Reference” is the security code provided by the Custodian – BNP PARIBAS (e.g. XS1261664350) for every maturity date? Also, how can I access the “Unique Identification Number”?
The Final Redemption Notice form is located on Annex A-16 of the Final Terms. The Clearing System Blocking Reference is not the ISIN code (e.g. XS1261664350) but rather a separate code provided by the custodian bank. The Unique Identification Number, as defined in footnote 17 in Annex A-16, is the Account Holder name followed by the first serial number of the first CER Lot appearing in Schedule 1 to the Final Redemption Notice.
- What is the procedure to deliver the EHS Audit Report to the Verification Agent?
Paragraph 2 of Annex A-17 describes the procedures for delivering the EHS Audit Report to the Verification Agent. The EHS report must be separately delivered by regular mail to the Verification Agent at the address listed in the last page of the Final Terms. The delivery of the EHS Audit Report is a condition to Final Redemption. In addition to the hard copy, and for easier processing, Noteholders are strongly encouraged to also send the EHS Audit Report by e-mail to the Verification Agent at: PAF_Verification@kommunalkredit.at . Sending the EHS Audit Report by e-mail does not replace the requirement to send the hard copy to the Verification Agent at the address listed in the last page of the Final Terms.
- Which channel of communication (email, letter) will be used for the noteholders to receive confirmation from the Verification Agent?
Noteholders will receive confirmation from the Verification Agent (PAF_Verification@kommunalkredit.at) via email transmitting the result of the First Check.
- Where do we find the account details (Registry Account) to transfer the Qualifying CERs to the World Bank?
The account details can be found on Annex A-5 and A-23. The account number is “CH-100-2115-0” and the Account Name is “KPC”.
- In which bank account does the Paying Agent transfer the money to Noteholders? Is it a direct payment to the noteholder’s account or does this payment go through the custodian bank?
The Paying Agent will make payment to the noteholder’s custodian bank. Noteholders that wish to transfer the funds from their custodian bank to another account should make arrangements with their custodian banks.
- Will the IBRD or the verification agent review the eligibility of EHS reports, monitoring reports, or any other information prior to submission of the Final Redemption Notice?
No. Neither IBRD nor the Verification Agent will confirm the eligibility of reports prior to submission of the Final Redemption Notice. It is incumbent on the noteholders to reference the eligibility criteria and ensure that their credits meet these criteria.