Lánamál ríkisins - Company Announcement

- Auction in new series RIKB 19 0226

On Thursday, February 21, 2008, at 14:00, the Central Bank of Iceland will
conduct an auction of non-indexed Treasury Notes. 

This is a new series of Treasury Notes, RIKB 19 0226, which will pay interest
each year on February 26. The maturity date of the Notes is February 26, 2019.
The nominal coupon rate will be determined following the auction. 

The maximum total amount offered in this auction will be 10,000 m.kr. nominal
value. Only primary dealers in Government 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. It is appropriate to emphasise
that this is not a price auction, as has been the case previously. Bids for
this auction shall be expressed as yields, with two decimal places. 

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

The payment and settlement date is Tuesday, February 26, 2008.

For this auction, the Central Bank requests bids for the following series: 

Series				
RIKB 19 0226				

ISIN
IS0000017077

Maturity date
February 26, 2019

Outstanding amount
0 kr.

Time to maturity
11 years

After the results of the auction are available, the Central Bank will offer
primary dealers the equivalent of 10% of the nominal value sold in the auction,
at the yield of accepted bids, until 14:00 on the settlement date of the
auction. 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 for these transactions is one day after the
transaction date (T+1). 

The results of the auction will be published at the end of the transaction
date. 

Further information can be obtained from Björgvin Sighvatsson, International
and Market Department, Central Bank of Iceland, at +354 569 9633.

Attachments:

termsfeb081.pdf

bloomfeb08.pdf

presentation_rikb_19_0226.pps