Lánamál ríkisins - Company Announcement

Signing of agreements regarding issuance of Treasury securities and market making in the secondary market

The Minister of Finance assigns the Government Debt Management within the
Central Bank of Iceland the task of concluding agreements concerning issuance
of Treasury securities and market making in the secondary market. 

Members of a stock exchange in Iceland that have been granted an operating
licence pursuant to clause 1-2 in first paragraph of article 4 in Act No.
161/2002 on financial undertakings and have equity of minimum of EUR 5 million,
cf. second paragraph of article 14 of the same Act and are equipped to
participate in auctions of Treasury securities, are invited to become parties
to such agreements. 

Primary dealers have the exclusive right to submit bids at the auctions, where
marketable Treasury securities are offered for purchase or sale. They also have
access to securities lending according to terms and rules. 

Primary dealers will act as market makers for benchmark series of Treasury
securities on the stock exchange. Primary dealers are obliged to submit bid and
ask quotes for a minimum of 100 m.kr. for each benchmark series of Treasury
bonds in accordance with the minimum spread specified in the agreements. 

Further information can be found in the accompanying sample agreement
concerning issuance of Treasury securities and market making in the secondary
market. Exchange members that wish to become primary dealers in Treasury
securities shall appear at the offices of the Central Bank of Iceland,
Kalkofnsvegur 1, Reykjavík, at 15:45 on Friday, 11 March 2016, in order to sign
the pertinent agreement. 

Further information can be obtained from Björgvin Sighvatsson, head of the
Government Debt Management at +354 569 9600.

Viðhengi:

press release before signing.pdf

Agreement_sample.pdf