Lánamál ríkisins - Company Announcement

Announcement of changes in Treasury issuance on the domestic bond market

At the beginning of the year, Government Debt Management announced its
intention to issue index-linked and nominal Treasury bonds in 2010, in the
amount of 170 b.kr., as well as expanding Treasury bill issuance by 20 b.kr. 
In the Government Debt Management Prospect, it was stated that a new series of
two-year Treasury bonds would be issued in the first half of the year, assuming
50 b.kr. nominal value in sales during the year. 

It has been decided to postpone the issuance of the two-year series until later
in the year and to reduce the proposed sale in the series by up to 20 b.kr. 
Issuance of Treasury bills will remain unchanged between years.  Instead, RIKB
11 0722 will be expanded by up to 15 b.kr., and RIKB 19 0226 and RIKB 25 0612
will be expanded by up to 25 b.kr. 

The purpose of the changes is to give the issuer greater scope to meet market
demand for various Treasury bond series, as well as reducing the Treasury's
repayment risk.  As such, the changes do not entail an increase in Treasury
borrowing.  Expanding RIKB 11 0722 at the expense of the two-year series is
designed to respond more effectively to investor demand, especially foreign
investors' demand for short Treasury securities, and the expansion of longer
series of nominal Treasury bonds is designed to respond to strong demand from
pension funds. 


Further information can be obtained from Björgvin Sighvatsson, Government Debt
Management, at the International and Market Operations Department, Central Bank
of Iceland; tel +354 569 9600.

Bifogade filer:

press release28apr2010.pdf