Lánamál ríkisins - Other information disclosed according to the rules of the Exchange

Auction of nominal bonds RIKB 20 0205

On Friday, 13 January at 11:00 am, Government Debt Management will conduct an
auction of Treasury bonds. 

In this auction nominal bonds RIKB 20 0205 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. 

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 17 January 2017. 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 is Wednesday, 18 January 2017.



                                EXCHANGE AUCTION

In this auction, the parties have the option of purchasing bonds in RIKB 20
0205 with the sale of RIKB 17 0206, which matures on 6 February 2017.
Government Debt Management will purchase RIKB 17 0206 at a pre-determined price
– that is, at a clean price of 99.990 (104.730437 with accrued interest per 100
nominal value) – with settlement on 18 January 2017. To clarify, this price is
equivalent to 5.08% flat interest. The value of these securities, together with
accrued interest, will constitute payment for the new securities. Those who
want to use RIKB 17 0206 as a payment in the auction, must inform the GDM no
later than 14:00 on Tuesday, 17 January 2017. 

Investors that own RIKB 17 0206 and are interested in reinvesting in RIKB 20
0205 are particularly encouraged to participate in this auction by contacting
their nearest bank. 



For further information please contact Oddgeir Gunnarsson, GDM, at +354 569
9635.

Liitteet:

News_11_January.17.pdf

Auctionterms _13_January.17.pdf