Lánamál ríkisins - Company Announcement

Sale of Government bonds

The Treasury acquired 2.700 million nominal value of RIKB 19 0226 in relation
to the Avens settlement between the Central Bank of Iceland and the Central
Bank of Luxemburg and the liquidator of Landsbanki Íslands Luxemburg in 2010.
The Treasury also owns 1.000 million nominal value of HFF 24 0215. 

It has been decided to sell these bonds in an auction Monday 17 December and
the proceeds used to improve the Treasury cash position with the Central Bank
of Iceland. 

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. On offer will
be: 

Series                          Nominal value

HFF 240215                1.000 m.kr.

RIKB 19 0226            2.700 m.kr.

The Central Bank reserves the right, on behalf of the Treasury, to accept some
or all of the bids placed, or to reject them all. Only primary dealers in
Government securities are authorised to submit bids in this auction; however,
they also submit bids on behalf of investors. 

Bids shall be sent to the Central Bank via the Bloomberg auction system,
between 09:30 and 10:00. Bids shall be presented as prices, with three decimal
places. The minimum amount of each bid is 1 m.kr. nominal value. The results
will be published at 11:00. 

The date of payment and settlement is Tuesday, 18 December, 2012

Attachments:

SaleofGovernmentBonds.pdf