Lánamál ríkisins - Company Announcement

Auction of Treasury Notes RIKB 11 0722 & RIKB 25 0612

On Friday, 22 January at 14:00 the Government Debt Management will conduct an
auction of two series of Treasury notes. 

The series that will be offered are RIKB 11 0722 and RIKB 25 0612. 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, January 27, 2010. 

For this auction, the GDM requests bids for the following series: 

Series		Maturity date	Outstanding amount*	Time to maturity
RIKB 11 0722	July 22, 2011	8,922 m.kr.		1.5 years
RIKB 25 0612	June 12, 2025	56,342 m.kr.		15.4 years
*Nominal value

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, January 26. 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 27, 2010.

Attachments:

auction_terms_rikb_100119.pdf

bloomber_auction_process_2010.pdf

auction_rikb_100119.pdf