News

Jun 13 2019
Bond News
Republic of Iceland issues a new Eurobond at the lowest yields in the Republic´s history

The Republic of Iceland has today concluded agreements on issuance of bonds totalling EUR 500 million, or the equivalent of ISK 71 billion.  

The bonds bear fixed interest of 0.1% and have a 5-year maturity, with a yield of 0.122%. This is the lowest yield in the history of the Republic. Investors showed strong interest in the issue, with total subscriptions around EUR 2,5 billion or five times the size of the issue.  The broad-based investor group is comprised of central banks and other institutional investors, mainly from Europe. Barclays, JP Morgan, Morgan Stanley and Nomura were joint managers for the issue.

Yesterday an offer of buy back of existing bonds of 750 million euros issued in 2014 expired. Owners of 60.5 million euros accepted the offer, in addition to those 398 million already tendered in December 2017. Owners that wished for got a priority allocation in the new bond.

Results of additional issuance of Treasury bonds RIKB 28 1115

As stated in paragraph 5 of Terms of Invitation to Tender for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 7 June, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 28 1115. Total outstanding nominal value of RIKB 28 1115 is now 61,001,601,519 kr. Settlement date is 12 June 2019.

Statistics

Date Event

Month

Actual

Last

Source

05.15 Unemployment APR 3.7% 3.2% VMS
04.30 Expectations Index APR 96.9 91.6 Gallup
04.29 CPI - (YoY) APR 3.3% 2.9% STI
03.20 Central Bank Policy Rate (7-day term deposits) MAR 4.50% 4.50% CB
10.23 Wage Index (MoM) SEP 0.6% -0.1% STI
10.23 Wage Index (YoY) SEP 5.9% 6.0% STI
10.19 Building Cost Index (YoY) NOV 3.8% 3.8% STI
10.10 International Reserves of the CB OCT 703.3B 684.4B CB

Upcoming events

Jun
20

Building Cost Index

Jun
21

Auction of Treasury Bills

Jun
24

Wage Index

Auctions

Source GDM
 
Time of close
 
Series
 Actual
Last
auction
Target
amount
Actual
amount
 
Source
11:00 10.05.2019
RIKB 28 1115 4.26% 4.42% Open 1,000m GDM
11:00 29.04.2018
RIKV 19 1115 4.35% 4.56% Open 3,883m GDM
Non-indexed Movement Price Yield
RIKB 20 0205 101.43 3.86
RIKB 22 1026 110.39 3.87
RIKB 25 0612 121.10 3.97
RIKB 28 1115 107.40 4.04
RIKB 31 0124 122.32 4.05
Indexed Movement Price Yield
RIKS 21 0414 105.15 0.93
HFF150224 106.15 1.21
RIKS 26 0216 103.43 0.97
RIKS 30 0701 123.60 0.98
HFF150434 120.10 1.16
HFF150644 134.30 1.15
Current Value 468.00
12 Months Change* 3.59%
3 Months Change* 4.48%
Last Month Change 0.21%
Daily CPI 468.00
* Annualized rates

News from Statistics Iceland