Lánamál ríkisins - Company Announcement

Auction announcement RIKB 13 0517 og RIKB 19 0226

On Friday, 20 February at 14:00 the Central Bank of Iceland will conduct an
auction in two series of Treasury notes. 

The maximum total amount offered in this auction will be 10,000 m.kr. nominal
value in the series RIKB 13 0517 and RIKB 19 0226. 

The Central Bank reserves the right to accept all of the submitted bids, 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 Dutch auction, which means that all
accepted bids will be offered to primary dealers at the same price. The lowest
accepted price 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, February 25, 2009.

For this auction, the Central Bank requests bids for the following series: 

Series	           
RIKB 13 0517

Maturity date
May 17,2013

Outstanding amount
33,966 m.kr.

Time to maturity
4,3 years

Series
RIKB 19 0226

Maturity date
Feb. 26,2019

Outstanding amount
44,669

Time to maturity
10 years

After the results of the auction are available, the Central Bank 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, February 24. 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 February 25, 2009. 

Further information can be obtained from Oddgeir Gunnarsson, International and
Market Department, Central Bank of Iceland, at +354 569 9633.

Attachments:

bloom17feb.pdf

auction terms 17feb.pdf