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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Results of additional issuance of RIKB 21 0805

As stated in paragraph 6 in General Terms of Auction for Treasury bonds, the Government Debt Management offered the equivalent of 10% of the nominal value sold in the auction 6 December, at the price of accepted bids. This time Primary Dealers did not exercise their right to purchase in RIKB 21 0805. Total outstanding nominal value of RIKB 21 0805 is now 11,875,000,000 kr. Settlement date is 11 December 2019.

Treasury Bond Auction Announcement - RIKB 21 0805
Series RIKB 21 0805
ISIN IS0000031482
Maturity Date 08/05/2021
Auction Date 12/06/2019
Settlement Date 12/11/2019
10% addition 12/10/2019

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.

Treasury Bill Auction Announcement - RIKV 20 0715
Series RIKV 20 0715
ISIN IS0000031623
Maturity Date 07/15/2020
Auction Date 11/28/2019
Settlement Date 12/02/2019

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.