17.03.20
Special press release concerning issuance of Government securities

In view of recent events relating to the COVID–19 pandemic, it is foreseeable that the Treasury’s financing need will increase markedly from previous forecasts. The economic outlook for coming months is highly uncertain, and it is therefore difficult to estimate the Treasury’s borrowing need for the current year. It is also uncertain how much of that need will be for short-term borrowing and how much for long-term borrowing.

In view of recent events relating to the COVID–19 pandemic, it is foreseeable that the Treasury’s financing need will increase markedly from previous forecasts. The economic outlook for coming months is highly uncertain, and it is therefore difficult to estimate the Treasury’s borrowing need for the current year. It is also uncertain how much of that need will be for short-term borrowing and how much for long-term borrowing.

It should be noted that Iceland’s Government debt level is low. Total debt amounts to about 854 b.kr., or roughly 27.5% of GDP. No domestic issues are scheduled to mature for the remainder of 2020, and foreign maturities total only 292 million euros (45 b.kr.), due in July.

The Treasury can obtain market financing in a number of ways. It can issue more bonds in the domestic market, as issuance according to the 2020 calendar is at a historical low of about 40 b.kr. It can also issue bonds abroad. Moreover, the Treasury can address a deteriorating cash position by issuing Treasury bills or taking short-term money market loans. The Treasury’s liquidity position in Icelandic krónur currently totals 44 b.kr. Finally, the Treasury holds the equivalent of 169 b.kr. in foreign currency deposits with the Central Bank. Its position is therefore sound, and there is no reason to fear that the Treasury will be unable to handle the expected fall in revenues and increased financing need in the weeks and months to come if such expectations should materialise.

Revision of Q2/2020 issuance

  • It has been decided to increase Treasury bond issuance in Q2/2020 to a maximum of 40 b.kr. Further details will be published in the Quarterly Government Debt Management Prospect at the end of this month. This means that issuance for the year will increase substantially relative to the previously published annual Prospect.

It is difficult at present to estimate the total need for Treasury issuance in 2020. Before decisions can be made, more detailed information on the Treasury’s borrowing need is needed. The situation will be clarified in the coming weeks and months.

Further information can be obtained from Esther Finnbogadóttir at the Ministry of Finance and Economic Affairs, at tel +354 545 9200, and from Björgvin Sighvatsson at Government Debt Management, at tel +354 569 9600.

Press release (pdf)

Aðrar fréttir

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