Lánamál ríkisins - Company Announcement

Bond price for foreign exchange auction

According to an announcement published by the Central Bank of Iceland on 12
January 2012, the Terms of Auction state that the swap rate for the Bank's
purchase of foreign currency in connection with the sale of Treasury bonds in
the series RIKS 30 0701 would be published at the close of business on 9
February 2012. 

It has been decided that the number of Treasury bond units per euro shall be
based on the auction price and the fixed price of the Treasury bonds, which is
115.675833 kr. per Treasury bond unit with accrued interest and indexation
(dirty price), assuming a settlement date of 17 February 2012 (yield 2.50%). 
The formula is as follows: Swap rate = auction price/(bond price/100).

Attachments:

01 Bond Price FX-auction.pdf