May 27 2015
Loan from Poland paid off

This week the Republic of Iceland will prepay the loan taken from Poland in 2009, in connection with the Stand-By Arrangement with the International Monetary Fund (IMF) following the collapse of the Icelandic financial system. The prepayment amounts to 204 million zlotys, the equivalent of 7.3 billion Icelandic krónur.  The loan facility offered by Poland totalled 630 million złotys, and Iceland borrowed about a third of that amount.  The original maturity of the loan was during the period 2015-2022. 

Icelandic Minister of Finance and Economic Affairs Bjarni Benediktsson, Central Bank of Iceland Governor Már Guðmundsson, and Polish Minister of Finance Mateusz Szczurek signed an amendment to the loan agreement between Poland and Iceland, enabling the Treasury to prepay the loan from Poland. Mr. Szczurek is in Iceland for an official visit at the invitation of the Minister of Finance and Economic Affairs.

“By offering Iceland a loan at a most difficult time, thereby helping us to revitalise our country, Poland offered us a helping hand in a spirit of friendship and generosity. Such friendship is invaluable, and the Icelandic people wish to thank you for it,” said Bjarni Benediktsson at a meeting of the two ministers today.

Repayment marks a turning point

Iceland’s repayment of the Polish loan marks a turning point, as it concludes the settlement of the bilateral loans Iceland received in the wake of the crisis. In 2014, the Treasury and the Central Bank prepaid the outstanding balance of the loans from the Nordic countries.

The Central Bank has already prepaid the majority of the loan from the IMF. The remainder is due at the end of 2015 and in the first half of 2016.
Iceland’s ready access to foreign credit markets, as is evidenced by its successful eurobond issue in 2014, together with the progress made in economic and fiscal affairs in recent years and the improvement in Treasury performance, has enabled the country to prepay the loans taken in the wake of the collapse of its financial system. 

More news

Treasury Bill Auction Announcement RIKV 20 0205
Series RIKV 20 0205
ISIN IS0000031292
Maturity Date 05.02.2020
Auction Date 27.06.2019
Settlement Date 01.07.2019

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 number and with the Maturity Date 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 further information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.

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.