Lánamál ríkisins - Company Announcement

Auction of nominal Treasury Bonds RIKB 11 0722 & RIKB 25 0612

On Friday, 4 June at 11:00 the Government Debt Management will conduct an
auction of two series of Treasury bonds. 

The series that will be offered are RIKB 11 0722 and RIKB 25 0612. The total
amount of accepted bids will be announced after the auction. 

The GDM reserves the right to accept all of the submitted bids, accept 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 single-price auction, which means that all
accepted bids will be sold to primary dealers at the same price. The lowest
accepted price (highest yield) 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, June 9, 2010. 

For this auction, the GDM requests bids for the following series: 

Series	     Maturity date Outstanding amount*	 Time to maturity
RIKB 11 0722	22 July 2011	50,706 m.kr.	     1.1 year
RIKB 25 0612	12 June 2025	77,838 m.kr.	     15.0 years
*Nominal value

After the results of the auction are available, the GDM 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, June 8 2010. 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 9 June 2010. 

For further information please contact Oddgeir Gunnarsson, GDM, at +354 569
9633.

Attachments:

auction terms rikb 100601.pdf

news_rikb11_25_100601.pdf