Treasury successfully issues its inaugural Green bond

14.03.24
Treasury successfully issues its inaugural Green bond

Today the Republic of Iceland issued a green bond in the amount of 750 million euros, the equivalent of ISK 111 bn. The bond bears a 3.5% fixed rate coupon, a reoffer yield of 3,636% and a 10 year maturity. The bonds are issued off Iceland´s Sustainable Financing Framework.

Investors showed remarkable interest, with demand totaling EUR 7 bn, or more than nine times the issue size. The investor group includes Central banks, official institutions, bank treasuries, insurance companies, and other institutional investors, mainly from Northern Europe. Joint lead managers for the issue were JP Morgan, BNP Paribas, DZ bank and Nomura.

“It is particularly gratifying to see the confidence shown in our first green bond issue from a broad group of international investors. It is a sign of the credibility of Iceland’s fiscal and environmental policies, which underscore the international commitments we have taken on. This keen interest is also a sign of investors’ trust in Iceland and of the country’s image as an exemplar of sound environmental policy,” said Minister of Finance and Economic Affairs, Thordis Kolbrun Reykfjord Gylfadottir.

The investor group included around 280 investors. This is the largest number of investors who have ever participated in a Republic of Iceland´s transaction, and an unprecedented eight times level of over-subscription. 

“This bond issue is in line with our Government debt strategy, as well as being part of our climate action plan. The proceeds from the issue will be used to finance the Government’s expenses due to environmental issues in coming years. This financing better enables us to face the challenges that lie ahead. Strong demand and favourable terms also bear witness to investors’ confidence in Iceland’s economic and fiscal policy,” said Thordis Kolbrun Reykfjord Gylfadottir.

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Mar 20 2026
Primary Dealers for Government Securities
Signing of Primary Dealer Agreements

Today the Government Debt Management on behalf of the Treasury and primary dealers signed agreements regarding issuance and market making in Treasury securities. The objective of the agreements is to maintain the Treasury’s access to financing, to enhance price formation in the secondary market for Treasury securities and promote an active system of benchmark issues in Iceland.

As of 1 April 2026, five financial institutions have been appointed as “primary dealers in Treasury securities”. They are: Arion Banki hf., Fossar Investment Bank hf., Islandsbanki hf., Kvika banki hf. and Landsbankinn hf.

The following bullet points describe the main content of the primary dealer agreement:

  • Primary dealers have the exclusive right to submit bids at auctions where government securities are offered for purchase or sale.
  • Primary dealers have exclusive access to special facilities such as repurchase agreements offered by the Government Debt Management on behalf of the Treasury.
  • Primary dealers are obliged to submit bids at each auction for a minimum of 100 m.kr. nominal value.
  • Primary dealers are Market Makers in the secondary market for government bond benchmark series. They are obliged to submit bid and ask offers on the stock exchange for at least 50 to 100 m.kr. nominal value in each benchmark series (as laid out in the agreements).
  • Primary dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements.
  • Primary dealers are obliged to renew their offers within ten minutes after execution of transaction. The primary dealer is entitled to depart from the maximum spread requirement if certain conditions are fulfilled.
  • The agreement is valid from 1 April 2026 to 31 March 2027.

Further information can be obtained from Government Debt Management at the following email address: [email protected].

Mar 18 2026
Primary Dealers for Government Securities
Primary Dealer Agreements

The Minister of Finance and Economic Affairs tasks the Central Bank of Iceland’s Government Debt Management department with concluding primary dealer agreements on issuance of Treasury securities and market making in the secondary market.

Resident entities that have an operating licence in accordance with Article 4, Paragraph 1 of the Act on Financial Undertakings, no. 161/2002, that have the equipment needed to participate in Treasury securities auctions and can demonstrate a secure settlement of transactions through the Central Bank of Iceland, may request to be parties to the agreement.

Primary dealers have the exclusive right to submit bids at auctions where government securities are offered for purchase or sale. They also receive access to special facilities such as repurchase agreements for government bonds, in accordance with the relevant rules and the applicable terms and conditions.

Primary dealers act as market makers for benchmark government bonds and are obliged to submit bid and ask quotes for a certain minimum amount in each series of government bonds, in accordance with the bid-ask maximum spread specified in the agreement.

Further information can be found in the attached sample primary dealer agreement. Those parties wishing to become primary dealers in Treasury securities are requested to send digitally signed agreements to the Government Debt Management department at the Central Bank of Iceland before 16:00 hrs. Friday 20 March 2026.

Further information can be obtained from Government Debt Management at the following email address: [email protected].

Sample of Agreement (pdf)

Mar 18 2026
Nominal Treasury Bonds
Treasury Bond Auction Announcement - RIKB 38 0215
Series RIKB 38 0215
ISIN IS0000037265
Maturity Date 02/15/2038
Auction Date 03/20/2026
Settlement Date 03/25/2026
10% addition 03/24/2026

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 number and with the Maturity Date 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. Article 6 of the General Terms of Auction for Treasury bonds applies for the right to purchase an additional 10%.

Further reference is made to the description of the Treasury bond and the General Terms of Auction for Treasury bonds on the Government Debt Management website.

For additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.