The Housing Financing Fund (HFF) has decided to auction HFF150914, HFF50224,
HFF150644 and HFF150644 bonds. HFF aims to accept bids for up to ISK
8.000.000.000 at nominal value. HFF reserves the right to increase or reduce
the size of the bond issue, and accept or reject all or none of the bids.
According to a primary dealership agreement between HFF on the one hand and
Glitnir Bank hf., Kaupthing bank hf., Landsbanki Íslands hf., MP Investment
Bank, Saga Capital Investment Bank and Straumur- Burdaras Investment Bank hf.
on the other hand, only the primary dealers are authorized to participate in
HFF bond auctions.
Bids are hereby requested for the primary sale of HFF bonds, issued by HFF in
accordance to the following specifications.
Issued amount: 8.000.000.000, - (eight billions ISK).
Minimum bid: See primary dealer agreement issued 2008/06/18.
Maturity: See prospectus issued 2004/06/28 and 2004/11/12.
Date of issue: See prospectus issued 2004/06/28 and 2004/11/12.
Coupon dates: See prospectus issued 2004/06/28 and 2004/11/12.
Nominal interest rate: Fixed at 3.75%.
Base index: See prospectus issued 2004/06/28 and 2004/11/12.
Units: Electronic bonds for each category, with one unit equalling
ISK 1.
Commission: HFF pays a commission of 0.15%.
Bids: Bids should include the clean price without commission, the
bid amount, and the yield without commission.
Auction method: “American Auction Method”, where each bidder seeks his/her
price. The auction can therefore result in more than one
price.
Settlement of sales: Thursday August 14th, 2008.
Bids shall be submitted in a sealed envelope before 4:00 p.m. on Friday August
8th 2008, addressed to:
The Housing Financing Fund,
c/o Finance Division
Borgartun 21,
105 Reykjavik, Iceland
Bids may also be submitted via e-mail to fjarstyring@ils.is or fax (+354)
569-6890 on the bidding day, provided the staff at HFF´s Finance Division has
been informed beforehand of the bid specifications by telephone (+354)
569-6990.
All bidders will be notified of the results before 09:30 on Monday August 11th,
2008.