Lánamál ríkisins - Company Announcement

Auction of nominal bonds RIKB 16 1013 & RIKB 20 0205

<span style="font-size: 12pt;">On </span><strong style="font-size:
12pt;">Friday, 11 April at<span style="font-size: 12pt;"></span><strong
style="font-size: 12pt;">11:00 am<span style="font-size: 12pt;">, Government
Debt Management will conduct an auction of Treasury bonds.</span><span
style="font-size: 11pt;"></span><span style="font-size:12pt;">In this auction nominal bonds RIKB 16 1013 and
RIKB 20 0205 will be offered. The total amount of accepted bids will be
announced after the auction.</span><span style="font-size: 11pt;"></span><span style="font-size:12pt;">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.</span><span style="font-size: 11pt;"></span><span style="font-size:12pt;">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.</span><span style="font-size:
11pt;"></span><span style="font-size:12pt;">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, 15
April 2014. Each primary dealer that has submitted an accepted bid in the
auction has the right to purchase an amount proportional to its total
purchase.</span><span style="font-size: 11pt;"></span><span style="font-size:12pt;">The payment and settlement date is Wednesday, 16
April 2014.</span><span style="font-size: 11pt;"></span><span style="font-size:12pt;">For further information please contact Oddgeir
Gunnarsson, GDM, at +354 569 9635.</span>

Attachments:

News_8.Apr14.pdf

Auctionterms _11.apr.14.pdf