Lánamál ríkisins - Company Announcement

Republic of Iceland issues Euro-dollar bonds

Iceland has today issued a USD 1 billion Reg S / 144A bond offering due in
2016. This is a fixed rate issue with a 4.993% semi-annual yield, which
reflects 3.20% premium over mid-swaps. The transaction was well received by
global investors and the book was two times oversubscribed. The bonds were
predominantly placed with US and European accounts. The transaction followed a
six day investor roadshow in Europe and the US. The issue was lead-manged by
Barclays Capital, Citi and UBS Investment Bank. 


„This transaction is an important milestone for Iceland“,  says Finance
Minister Steingrímur J. Sigfússon. „I am extremely pleased that Iceland has
regained access to the capital markets only two and a half years after the
onset of the financial crisis. We are encouraged to see the breadth and depth
of investor interest. The investors reception validates our view that the
Icelandic economy is on the road to recovery and that the outlook is promising.
With this transaction Iceland has set a benchmark in the market which should
over time facilitate capital market access for other Icelandic issuers.“ 


This announcement does not constitute an offer to sell or the solicitation of
an offer to buy securities in the United States or any other jurisdiction. Any
offering of securities will not be registered under the United States
Securities Act of 1933, as amended (the "Securities Act") or any relevant
securities laws of any state or other jurisdiction and may not be offered or
sold in the United States absent registration or an exemption from registration
under the Securities Act.  Accordingly, the securities to which this
announcement relates would be offered and sold only (1) inside the United
States to “Qualified Institutional Buyers”, as defined in, and in reliance on,
Rule 144A under the Securities Act and (2) outside the United States to non-US
persons in reliance on Regulation S under the Securities Act. There will be no
public offering of the securities in the United States. 
This announcement is being distributed only to, and is directed at (a) persons
who have professional experience in matters relating to investments who fall
within Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (as amended, the “Order”), (b) persons falling within
Article 49(2)(a) to (d) (high net worth entities, unincorporated associations
etc.), (c) persons outside the United Kingdom and (d) other persons to whom it
may otherwise lawfully be communicated (all such persons together being
referred to as “relevant persons”). The investments or investment activity to
which this announcement relates are available only to, and any invitation,
offer or agreement to subscribe, purchase or otherwise acquire such investments
will be available only to or will be engaged in only with, relevant persons.
Any person who is not a relevant person should not act or rely on this document
or any of its contents. Persons distributing this announcement must satisfy
themselves that it is lawful to do so.

Attachments:

Euro-dollar issue.pdf