Lánamál ríkisins - Company Announcement

Auction of inflation-linked and nominal bonds RIKS 21 0414 and RIKB 31 0124

On Friday, 29 April at 11:00 am, Government Debt Management will conduct an
auction of Treasury bonds. 

In this auction inflation-linked bonds, RIKS 21 0414 and nominal bonds, RIKB 31
0124 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, 3 May 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 is Wednesday, 4 May 2011.

Attachments:

Auction terms RIKB_110426.pdf

news_RIKB_110426.pdf