Lánamál ríkisins - Company Announcement

Auction of bonds RIKB 12 0824 and RIKB 16 1013 with exchange auction

On Friday, 19 November at 11:00 the Government Debt Management will conduct an
auction of Treasury bonds. 

In this auction two-year bonds, RIKB 12 0824 and six-year bonds, RIKB 16 1013
will be offered. 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. 

The payment and settlement date is Wednesday, 24 November 2010. 

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, 23 November 2010. 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 24 November 2010. 

EXCHANGE AUCTION 

In this auction, the parties have the option of purchasing bonds in RIKB 12
0824 and in RIKB 16 1013 with the sale of RIKB 10 1210, which matures on 10
December 2010. Government Debt Management will purchase RIKB 10 1210 at a
pre-determined price - that is, at a clean price of 100.40 (113.547260 with
accrued interest per 100 nominal value) - with settlement on 24 November 2010.
To clarify, this price is equivalent to 4.07% flat interest. The value of these
securities, together with accrued interest, will constitute payment for the new
securities. Those who want to use RIKB 10 1210 as a payment in the auction,
must inform the GDM no later than 14:00 on Tuesday, 23 November 2010. 

Liitteet:

news_rikb_riks_101116.pdf

auction terms rikb _riks 101116.pdf