30.12.24
Medium-Term Debt Management Strategy 2025-2029

This Medium-Term Debt Management Strategy for the period 2025-2029 is presented on the basis of the fiscal plan, in accordance with Article 38 of the Act on Public Finances, no. 123/2015. The strategy is to be updated annually. The Medium-Term Debt Management Strategy is set forward over a horizon of five years and is based on the previous Strategy, issued in December 2023.

Medium-Term Debt Management Strategy 2025-2029 (pdf)

Aðrar fréttir

Treasury issues Eurobond

The Republic of Iceland has successfully issued a €750 million Eurobond (ISK 109 billion equivalent) with a fixed coupon of 2.625% and a five-year maturity, priced at a re-offer yield of 2.672%. The proceeds will be used to strengthen the foreign exchange reserves of the Central Bank of Iceland and to refinance existing Eurobonds.

Concurrently with the new issue, the Treasury launched a tender offer to repurchase its outstanding €500 million Eurobond maturing in 2026. The offer remains open until 17:00 BST on Friday, 23 May 2025.

The transaction attracted robust demand, with orders totalling €4.4 billion—nearly six times the issue size. The investor base comprised over 100 institutions, including asset managers, banks, central banks, pension funds, insurance companies, and other institutional investors, primarily from across Europe. Citibank, Barclays, J.P. Morgan, and BNP Paribas acted as joint lead managers for the transaction.

Daði Már Kristófersson, Minister of Finance and Economic Affairs, commented:
“It is highly gratifying to see such strong investor interest in this bond issue and the improved spreads compared to our previous offerings. The breadth and diversity of the investor base align with our goal of broadening access to Icelandic government bonds. This outcome reflects market confidence in the Icelandic economy, sound public finances, and the Government’s policy direction.”

This issuance forms part of the Government’s Medium-Term Debt Management Strategy, which aims to ensure that the Treasury is a regular and credible issuer in international capital markets.

The pricing of the bond, 42 bps over mid-swaps, represents a significant improvement over the Treasury’s 10-year green bond issued in 2024, which carried a mid-swap spread of 95 basis points. Despite ongoing global uncertainty, spreads on Icelandic sovereign debt have narrowed and outperformed those of many peers with comparable credit ratings.

“Our message is resonating well with investors,” said Minister Kristófersson. “Iceland stands out for its solid and growing economy with good prospects, declining inflation, diversified exports, improved sustainability, and stronger credit profile.”

May 15 2025
Treasury Bills
Treasury Bill Auction Announcement - RIKV 25 0820 - RIKV 25 1119
Series RIKV 25 0820 RIKV 25 1119
ISIN IS0000037216 IS0000037547
Maturity Date 08/20/2025 11/19/2025
Auction Date 05/19/2025 05/19/2025
Settlement Date 05/21/2025 05/21/2025

On the Auction Date, between 10:30 am and 11:00 am, the Government Debt Management will auction Treasury bills in the Series, with the ISIN numbers and with the Maturity Dates according to the table above. Payments for the Treasury bills must be received by the Central Bank before 14:00 on the Settlement Date and the Bills will be delivered in electronic form on the same day.

Further reference is made to the General Terms of Icelandic Treasury bills and General Terms of Auction for Treasury bills on the Government Debt Management website.

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