Lánamál ríkisins - Company Announcement

Housing Financing Fund and Treasury swap Treasury bonds

It has been decided that the Treasury will repurchase nominal RIKH 18 1009
bonds for 32,500,000,000.00 kr. nominal value from the Housing Financing Fund.
In exchange, the Treasury will deliver indexed RIKS 30 0701 bonds in the amount
of 31,620,000,000.00 kr. The transaction will be settled on 9 November. 
This measure will replace the non-indexed Treasury's capital contribution to
the Housing Financing Fund with indexed securities. The objective is to reduce
the Housing Financing Fund's indexation risk, as most of the Fund's obligations
are indexed. The swap will have an insignificant impact on Treasury debt.

Attachments:

10-Swap of Treasury bonds.pdf