Lánamál ríkisins - Company Announcement

Auction of nominal bonds RIKB 12 0824 and RIKB 16 1013

On Friday, 7 January at 11:00 the Government Debt Management will conduct an
auction of Treasury bonds. 

In this auction two-year bonds, RIKB 12 0824 and five-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, 12 January 2011.

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, 11 January 2011. 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 12 January 2011.

Attachments:

Auction terms RIKB _110104.pdf

news_RIKB_110104.pdf