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

Treasury Issues EUR-denominated Bonds

The Republic of Iceland has today concluded agreements on issuance of bonds totalling EUR 500 million, or the equivalent of ISK 61,5 billion.  

The bonds bear fixed interest of 0.5% and have a 5-year maturity, with a yield of 0.56%. Investors showed strong interest in the issue, with total subscriptions around EUR 3,9 billion or eight times the size of the issue.  The broad-based investor group is comprised of central banks and other institutional investors, mainly from Europe. 

Citibank, Barclays, Deutsche Bank and Nomura were joint managers for the issue.

Yesterday an offer of buy back of existing bonds of 750 million euros issued in 2014 expired. Owners of 397,6 million euros accepted the offer. Owners that wished for got a priority allocation in the new bond. Treasury’s total debt increases by 12.5 bn. ISK.