Spain: Impact of RD 1145/2011 on Basque bonds

Further to our Announcement A11153, dated 17 October 2011, we hereby inform you that, in order to comply with the provisions of the Royal Decree 1145/2011 ("RD 1145/2011"), the Bolsa de Bilbao, as paying agent, has confirmed the new Immediate Refund and Quick Refund tax procedures for bonds issued by the Basque government.

The tax procedures and disclosure obligations for Spanish residents are effective

immediately

and are the same as those currently in place for public debt securities issued by the Spanish Treasury and by Autonomous Communities and paid by Bank of Spain, as described in Announcement A11153.

Specific deadlines

Please note that the deadlines for the receipt of tax information by Clearstream Banking1 are not the same as those imposed by Bank of Spain. According to the Bolsa de Bilbao requirements, the deadlines are as follows:

• For Immediate Refund: at least six business days before the respective payment, by 12:00 CET;
• For Quick Refund: at the latest by the eleventh calendar day (or the first business day before that if the eleventh calendar day is not a business day) after the respective payment date, by 12:00 CET.

We remind you that any instruction, tax certification or amendment received after the Immediate Refund deadline will have as result the rejection of your application and the reclaim will have to be submitted via the Quick Refund procedure.

Furthermore, all declared positions must be accurate on the relevant record date (that is, one business day before payment date) at 19:00 CET. If there is a discrepancy between the declared positions and your total holding visible in the books of Clearstream Banking¹, your application for tax exemption will be rejected and, consequently, the maximum standard tax rate of 19% will be applied.

Specific One-Time Certificate

The One-Time Certificate for Spanish Government Bonds and Basque Bonds must be submitted (see the PDF file attachment).

Further information

For further information, please contact the Clearstream Banking Tax Help Desk on:

or Clearstream Banking Customer Service or your Relationship Officer.

1. Clearstream Banking refers to Clearstream Banking, société anonyme, registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL).