Savings notes issued by the Government of the Republic of Lithuania are debt securities intended for individuals and non-profit businesses. The procedure for distributing savings notes is specified in 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 Lithuanian Government.
Savings notes are not allowed to be publicly traded and secondary circulation is allowed only between Nasdaq CSD participants which have signed agreements with the issuer. Savings notes are not transferred or settled in T2S. They constitute a non-T2S-eligible instrument and as such are registered, maintained, and settled only in the core CSD system
Savings notes are distributed during periods determined by the issuer in advance. An ISIN code is assigned to each issue of savings notes. During a distribution period, the participant sends the Nasdaq CSD instructions to settle distributed savings notes in the core CSD system.
It is possible for an investor to sell savings notes back before their maturity date. Dates for the early redemption of savings notes and deadlines for early-redemption requests are specified in the terms and conditions of every issue. At the request of an investor, the depository participant submits the settlement instruction to the Nasdaq CSD for early redemption according to the early-redemption schedule. The settlement instruction is then settled in the core CSD system on the intended settlement day.
Early redemption of savings notes may be carried out on the interest (coupon) payment date. If the investor submits an application for early redemption of savings notes to the participant of the Nasdaq CSD on the interest payment date, he will receive only the price for early redemption.
Redemption of savings notes and interest (coupon) payment are executed as corporate action events and follow the standard corporate action settlement process in the core CSD system. The interest payment schedule and redemption details for each savings notes issue are indicated in its terms and conditions and stored in the core CSD system.
The Nasdaq CSD acts as the issuer CSD for the savings notes. Settlement of savings notes follows the Lithuanian statutory calendar. Savings notes are accounted for and settled in the Lithuanian SSS.
Savings notes portal provides the possibility to acquire these securities and manage your portfolios of these securities. Please visit Savings Notes portal.