Lánamál ríkisins - Company Announcement

CORRECTION: Auction of Treasury Notes RIKB 10 1210, RIKB 13 0517 & RIKB 19 0226 Published 2009-01-21 10:38:58

On Friday, 23 January at 14:00 the Central Bank of Iceland will conduct an
auction on three series of Treasury notes. 

The maximum total amount offered in this auction will be 10,000 m.kr. nominal
value in the series RIKB 10 1210 and total 10,000 m.kr. nominal value in the
series RIKB 13 0517 and RIKB 19 0226. 

The Central Bank reserves the right to accept all of the submitted bids, 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 Dutch auction, which means that all
accepted bids will be offered to primary dealers at the same price. The lowest
accepted price 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, January 28, 2009.

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

Series			
RIKB 10 1210			
RIKB 13 0517		
RIKB 19 0226
Maturity date
Dec. 12, 2010
May 17,2013
Feb. 26,2019

Outstanding amount
12,514  m.kr.
30,000 m.kr.
37,783 m.kr.

Time to maturity
1,9 years
4,3 years
10 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 price of accepted bids, until 14:00 on Tuesday, January 27. 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 January 28, 2009. 

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

Attachments:

auction terms rikb-enska21jan.pdf

bloomber21janrb.pdf