Agreements on issuance of Treasury securities and market making in the secondary market

13.03.24
Agreements on issuance of Treasury securities and market making in the secondary market

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 Treasury securities are offered. 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 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 15 March 2024.

Further information can be obtained from Björgvin Sighvatsson, Head of Government Debt Management, at tel +354 569 9600.

Sample of Agreement (pdf)

Til baka

Aðrar fréttir

Jul 02 2025
Inflation-linked Treasury Bonds
Treasury Bond Auction Announcement - RIKS 29 0917 - Switch Auction or Cash payment
Series RIKS 29 0917
ISIN IS0000037711
Maturity Date 09/17/2029
Auction Date 07/04/2025
Settlement Date 07/09/2025
10% addition 07/08/2025
 
Buyback issue RIKS 26 0216
Buyback price (clean) 98.1500

On the Auction Date, between 10:30 a.m. and 11:00 a.m., 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. Article 6 of the General Terms of Auction for Treasury bonds applies for the right to purchase an additional 10%. The Treasury bonds will be delivered in electronic form on the Settlement Date.

Payment for the bonds can be made in cash or with the Buyback issue at the Buyback price.

Payment in cash for the Treasury bonds must be received by the Central Bank before 14:00 on the Settlement Date. If payment is made with the Buyback issue, a notification of the amount must be received no later than by 14:00 on the Auction Date. In that case, the value of the Buyback bond is determined by the Buyback price plus accrued interest and indexation (i.e. dirty price).

No fee is paid in relation to the purchase of RIKS 26 0216.

Further reference is made to the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

For additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.
Jul 01 2025
Treasury Bonds
Additional Treasury Bond Auction Announcement - RIKB 32 1015 - Switch Auction
Following the settlement of HFF bonds issued by ÍL Fund (formerly the Housing Financing Fund), it has been decided to hold a switch auction, giving owners of the inflation-linked government bond series RIKS 50 0915 the opportunity to exchange them for the nominal bond series RIKB 32 1015. Interested parties are advised to contact a primary dealer to participate in the switch auction.
Series RIKB 32 1015
ISIN IS0000037752
Maturity Date 10/15/2032
Auction Date 07/03/2025
Settlement Date 07/08/2025
 
Buyback issue RIKS 50 0915
Buyback price (clean) 112.9150, which is equivalent to a yield of 2.78%

On the Auction Date, between 10:30 a.m. and 11:00 a.m., 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. The Treasury bond will be delivered in electronic form on the Settlement Date.

Payment for the bonds can only be made with the Buyback issue at the Buyback price. Cash is not accepted.

The value of the Buyback bond is determined by the Buyback price plus accrued interest and indexation (i.e. dirty price). The bonds must be delivered to the Central Bank before 14:00 on the Settlement Date.

No fee is paid in relation to the purchase of RIKS 50 0915.

Further reference is made to the description of the Treasury bond and the General Terms of Auction of Treasury Bonds.

Further information can be obtained from Government Debt Management at tel: +354 569 9994 or by email to lanamal@lanamal.is.
Jun 30 2025
Annual prospects
Quarterly Government Debt Management Prospect

Third quarter 2025

  • In Q3, Government bonds will be offered for sale in the amount of 30-40 b.kr. market value.
  • The bonds that could conceivably be offered are all benchmark Government issues, and issue size and market conditions will determine how much, if any, will be sold in each series.
  • During the quarter, it is planned to issue bonds in the inflation-linked RIKS 29 0917 series, with market making.
  • It is possible that a switch auction of RIKS 26 0216 will be held during the quarter.

GDM Q3 Prospect 2025.pdf