Dec 07 2018
S&P Global affirms Iceland at A/A1 with a stable outlook

Today S&P Global affirmed Iceland’s A/A-1 long- and short-term foreign and local currency sovereign credit ratings with a stable outlook. According to the rating agency, Iceland’s fiscal and external balance sheets have strengthened in recent years. However, the small, relatively concentrated economy remains vulnerable to external developments and the risk of reemergence of domestic overheating. S&P expects that growth rates will slow over the coming years as tourism inflows decelerate.

The stable outlook balances the potential for Iceland‘s stronger-than-anticipated fiscal and balance of payments performance against the risks posed by the economy‘s dependence on foreign trade developments and potential re-emergence of overheating stemming from the upcoming wage negotiations in 2019.

S&P could raise Iceland‘s ratings if fiscal and external balance sheets strengthen by more than presently anticipated over the next two years. Ratings could be lowered if financial stability risks or balance of payments pressures emerge over the next two years. For example if the domestic economy overheated, posing risks for Iceland‘s competitiveness and adversely affecting long-term growth prospects. This could also be the case if tourism flows slowed sharply, which could negatively affect the country‘s balance of payments performance and the banking system. According to S&P, the latter could manifest itself through an impact on the housing market, given the rapid pace of tourism-related construction projects in recent years.

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Treasury Bond Auction Announcement - RIKB 21 0805 - New Series
Series RIKB 21 0805
ISIN IS0000031482
Maturity Date 08/05/2021
Auction Date 09/20/2019
Settlement Date 09/25/2019
10% addition 09/24/2019

On the Auction Date, between 10:30 am and 11:00 am, 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. Payments for the Treasury Bonds must be received by the Central Bank before 14:00 on the Settlement Date, and the Bonds will be delivered in electronic form on the same day. For an additional 10% see Article 6 of the General Terms of Auction Treasury Bonds.

For further information, please refer to the Government Debt Management website, i.e. for 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.

Description of Treasury bond RIKB 21 0805

Results of additional issuance of RIKB 28 1115 and RIKS 26 0216

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 6 September, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 28 1115 but exercised their right in RIKS 26 0216 for 110 m.kr. Total outstanding nominal value of RIKB 28 1115 is now 65,401,601,519 and RIKS 26 0216 is now 20,282,700,000 kr. Settlement date is 11 September 2019.

Sep 10 2019
Primary Dealers
Increased securities lending facilities to primary dealers

Government Debt Management securities lending facilities for primary dealers.

According to the Agreements concerning Secondary Market Issuance and Market making in Treasury Securities dated 14 March 2019,  securities lending in series RIKS 26 0216 to each primary dealer will be increased from 1 b.kr. nominal value up to 2 b.kr. nominal value. These terms shall take effect on Wednesday 11 September 2019.