Lánamál ríkisins - Company Announcement

Auction of nominal bonds RIKB 15 0408

On Friday, 22 March at 11:00 am, Government Debt Management will conduct an
auction of Treasury bonds. 

A new two-year nominal bonds, RIKB 15 0408, will be offered. The bonds are
interest-bearing and pay 4.50% interest rate annually every 8 April. The
maturity date is 8 April 2015. Description of the bond is attached to this
press release and further information can be obtained from the website
www.ndma.is. The total amount of accepted bids will be announced after the
auction. 

The GDM reserves the right to accept all of the submitted bids, accept part of
them, or reject all of them. Only primary dealers in Treasury securities are
authorised to submit bids in this auction. They also submit bids on behalf of
investors. The minimum amount of each bid is 1 m.kr. nominal value. 

The auction will be structured as a single-price auction, which means that all
accepted bids will be sold to primary dealers at the same price. The lowest
accepted price (highest yield) will determine the selling price. In other
respects, reference is made to the Terms of Invitation to Tender, which
accompany this press release. 

After the results of the auction are available, the GDM will offer primary
dealers the equivalent of 10% of the nominal value sold in the auction, at the
price of accepted bids, until 14:00 on Tuesday, 26 March 2013. Each primary
dealer that has submitted an accepted bid in the auction has the right to
purchase an amount proportional to its total purchase. 

The payment and settlement date is Wednesday, 27 March 2013.

Bonds sold in the auction on 22 March 2013 are expected to be admitted to
trading on NASDAQ OMX ICELAND on 2 April 2013. 



                                EXCHANGE AUCTION

In this auction, the parties have the option of purchasing bonds in RIKB 15
0408 with the sale of RIKB 13 0517, which matures on 17 May 2013. Government
Debt Management will purchase RIKB 13 0517 at a pre-determined price - that is,
at a clean price of 100.28 (106.516986 with accrued interest per 100 nominal
value) - with settlement on 27 March 2013. To clarify, this price is equivalent
to 4.925% flat interest. The value of these securities, together with accrued
interest, will constitute payment for the new securities. Those who want to use
RIKB 13 0517 as a payment in the auction, must inform the GDM no later than
14:00 on Tuesday, 26 March 2013. 

Investors that own RIKB 13 0517 and are interested in reinvesting in other
Treasury bonds are particularly encouraged to participate in this auction by
contacting their nearest bank.

Attachments:

Description of RIKB 15 0408.pdf

Auctionterms _13Mar22.pdf

News_13Mars19.pdf