In connection with the composition agreements of the failed banks’ estates, the Treasury has received the following bonds as part of their stability contributions.
| Series | Nominal value (ISK) |
| RIKB 16 1013 | 4,286,000,000 |
| RIKB 19 0226 | 1,380,102,621 |
| HFF 34 0415 | 20,000,000 |
Lindarhvoll ehf. is handling the administration and disposal of the above assets on behalf of the Treasury. It has been decided to sell these bonds at auction on Tuesday 24 May 2016. The proceeds will be allocated in accordance with Temporary Provision III of the Act on the Central Bank of Iceland, no. 36/2001.
The auction will be structured so that all accepted bids will be offered to purchasers at the same price. The lowest accepted price (highest yield) will determine the sale price.
Lindarhvoll ehf. reserves the right, on behalf of the Treasury, to accept some or all of the bids placed, or to reject all of them. Only primary dealers in Government securities are authorised to submit bids in this auction; however, they may also submit bids on behalf of investors.
Bids shall be sent to the Central Bank via the Bloomberg auction system, between 10:00 hrs. and 10:30 hrs. on Tuesday 24 May 2016. Bids shall be presented as prices, with three decimal places. The minimum amount of each bid is 1 m.kr. nominal value. The results will be posted at 11:30 hrs.
Payment and settlement will take place on Thursday 26 May 2016.
Further information can be obtained from Björgvin Sighvatsson, Head of Government Debt Management, at tel +354 569 9633.
