Lánamál ríkisins - Company Announcement

Sale of bonds without State Guarantee owned by the Treasury

In connection with the composition agreements of the failed banks’ estates, the
Treasury has received the following bonds as part of their stability
contributions. 

Series       Nominal value (ISK)                           
ARION 10 02          464,251,401                           
ARION CB 2           483,548,392                           
HVS 05 1           1,205,000,000  (241 nominal value units)
LSS 05 2             200,000,000                           



Lindarhvoll ehf. is handling the administration and disposal of the above
assets on behalf of the Treasury.  It has been decided to sell these bonds at
auction on Wednesday 25 May 2016. The proceeds will be allocated in accordance
with Temporary Provision III of the Act on the Central Bank of Iceland, no.
36/2001. 

The auction will be structured so that all accepted bids will be offered to
purchasers at the same price.  The lowest accepted price (highest yield) will
determine the sale price. 

Lindarhvoll ehf. reserves the right, on behalf of the Treasury, to accept some
or all of the bids placed, or to reject all of them. Those that meet the
requirements for classification as a financial undertaking according to the Act
on Financial Undertakings are permitted to submit bids in the auction and may
also submit bids on behalf of investors. 

Bids shall be submitted to the Central Bank of Iceland by e-mail at
lindarhvoll@sedlabanki.is between 10:00 hrs. and 10:30 hrs. on Wednesday 25 May
2016.  Bids shall be presented as prices, with three decimal places.  The
minimum amount of each bid is 1 m.kr. nominal value.  The results will be
published at 15:00 hrs. on Thursday 6 May 2016. 

The date of payment and settlement is Monday 30 May 2016.

Further information can be obtained from Björgvin Sighvatsson, Head of
Government Debt Management, at tel +354 569 9633.

Attachments:

2016-05-20 Bonds without State Guarantee.pdf