Treasury issues eurobond

Today the Republic of Iceland issued bonds in the amount of 500 million euros, the equivalent of ISK 76bn. The bonds bear fixed interest of 0.625% and have a 6-year maturity, offering investors a yield of 0.667%.

Investors showed keen interest, with demand totalling EUR 3.4 bn, or nearly seven times the size of the issue. The investor group comprises central banks and other institutional investors, mainly from Europe. Joint lead managers for the transaction were Citi, JP Morgan, and Morgan Stanley. 

“This issue confirms the Republic’s open access to global capital markets and demonstrates investors’ confidence in the resilience Iceland has built up in recent years. It enhances our capacity to address the repercussions of the COVID-19 pandemic and reflects our strength and our ability to overcome the economic implications,” said Minister of Finance and Economic Affairs Bjarni Benediktsson. 

During the book building process, the terms improved by some 30 basis points as demand exceeded expectation, resulting in a mere 5bp new issue premium. Almost 200 investors placed orders, almost twice as many as in the Treasury’s last bond issue in 2019.

“This issue is in line with the Treasury’s debt management strategy. It will facilitate other domestic borrowers’ access to foreign credit markets and confirms that the Republic of Iceland has ready access to a large and diverse group of investors. The markets have been lively in the recent term, as many governments are in the same position, attempting to secure long-term financing,” said Bjarni Benediktsson.

Aðrar fréttir

Treasury Bond Auction Announcement - RIKB 21 0805 - RIKS 26 0216
Series RIKB 21 0805 RIKS 26 0216
ISIN IS0000031482 IS0000030732
Maturity Date 08/05/2021 02/16/2026
Auction Date 07/03/2020 07/03/2020
Settlement Date 07/08/2020 07/08/2020
10% addition 07/07/2020 07/07/2020

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bonds in the Series, with the ISIN numbers and with the Maturity Dates according to the table above. Payments for the Treasury Bonds must be received by the Central Bank before 14:00 on the Settlement Date, and the Bonds will be delivered in electronic form on the same day. For an additional 10% see Article 6 of the General Terms of Auction Treasury Bonds.

For further information, please refer to the Government Debt Management website, i.e. for the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Laufey Ómarsdóttir, Government Debt Management, at +354 569 9631.

Jun 30 2020
Annual prospects
Quarterly Government Debt Management Prospect

Third quarter 2020

  • In Q3, benchmark Treasury bonds will be offered for sale in the amount of 40-60 b.kr. market value.[1]
  • The bonds that could conceivably be offered are all benchmark Treasury issues, plus RIKS 33 0321,[2] and market conditions will determine how much, if any, will be sold in each series.
  • Issuance of a new nominal bond maturing in 2023, originally to be issued next year, will be expedited, and market making is planned.

[1]The sale price or market value refers to the clean price plus accrued indexation; i.e., with indexation but without accrued interest.

[2] Note that this series is not part of the benchmark system and will not be subject to market making.

GDM Q3 Prospect 2020.pdf