Lánamál ríkisins - Company Announcement

Bond price for foreign exchange auction

According to an announcement published by the Central Bank of Iceland on 19
December 2013 regarding the Central Bank of Iceland foreign currency auction to
be held on 4 February 2014, the Terms of Auction stated that the swap rate for
the Bank's purchase of foreign currency in connection with the sale of Treasury
bonds in the series RIKS 33 0321 would be published at the close of business on
31 January 2014. 

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
113.346333 kr. per Treasury bond unit with accrued interest and indexation
(dirty price), assuming a settlement date of 7 February 2014 (yield 2.80%). 1 

The formula is as follows: Swap rate = auction price/(bond price/100).





1 Clean price of 102.93

Attachments:

Bond price_FX_auction_4_Feb.2014.pdf