Treasury Securities

The Central Bank of Iceland - Government Debt Management, on behalf of the Republic of Icelandic, issues: Treasury Bills, Nominal Treasury Bonds and Inflation-linked Treasury Bonds.
  • Treasury Bills are nominal instruments, issued at a discount, with a maturity of three to six months. Yield is simple yield calculated according to the Act/360 day-count rule.
  • Nominal Treasury Bonds pay an annual coupon with maturity of up-to twenty-years.
  • Inflation-linked Treasury Bonds are non-callable, both coupon (RIKS 21 0414 and RIKS 30 0701 ) and zero-coupon (RIKS15 1001) bonds. The index used is the Consumer Price Index (CPI).
Treasury instruments have a name convention where the first four letters in the symbol indicate whether it is a bill, nominal bond or inflation-linked bond. The next two numbers indicate the year and the last four numbers the month and day of final maturity. Treasuries have been dematerialized and are issued at the Icelandic Securities Depository (ISD).

The GDM makes an effort to promote liquidity through by issuance into a few benchmark series. The strategy has been to issue mainly Nominal Treasury Bonds and there are now a few benchmarks outstanding. The Inflation-linked Treasury Bond maturing 2015 has been targeted for buyback but the issue maturing in 2021 has been issued as a Benchmark.
 
Type Symbol Maturity Status
Nominal T-Bond RIKB 12 0824 Maturing August 24th- year 2012 Benchmark
Nominal T-Bond RIKB 13 0517 Maturing May 17th - year 2013 Benchmark
I / L T-Bond RIKS 15 1001 Maturing October 1st - year 2015 Non-Benchmark
Nominal T-Bond RIKB 16 1013 Maturing October 13th - year 2016 Benchmark
Nominal T-Bond RIKB 19 0226 Maturing February 26th - year 2019 Benchmark
I / L T-Bond Maturing April 14th - year 2021 Benchmark
Nominal T-Bond RIKB 22 1026 Maturing October 26th - year 2022 Benchmark
Nominal T-Bond RIKB 25 0612 Maturing June 12th - year 2025 Benchmark
I / L T-Bond RIKS 30 0701 Maturing July 1st - year 2030 Non-Benchmark
Nominal T-Bond Maturing January 24th - year 2031 Benchmark
I / L T-Bond RIKS 33 0321 Maturing March 21st - year 2033 Non-Benchmark
 

Nominal Treasury Bonds are auctioned in bi-monthly auctions at preset dates according to an annual auction calendar. Auctions take place through Bloomberg auction system and direct access is limited to Primary Dealers. They however offer to submit bids in auctions on behalf of investors.

Secondary market trading in Treasury securities takes place on the NASDAQ OMX Iceland.

 
Treasury Securities are exempt from stamp duty and interest paid to non-residents is subject to witholding tax. They can however apply to the local tax commisioner for tax exemption/reduction if covered by treaty. That is a simple process and can be done through an agent. For more on taxation click here.

The Republic of Iceland is rated by Moody’s, Standard & Poor’s and Fitch.

 

 

 

 

 

 

 

 

 

 

Related FAQ


Where can I buy Icelandic Government securities and HFF bonds?
This website was created to provide information to parties interested in the Icelandic financial market, but not for the purpose of selling securities. We however provide a list of Dealers in Iceland that do offer securities to international investors. Investors have a choice of signing a custody agreement with any of our Primary Dealers, or of internetional settlement through agents like Clearstream or Euroclear.


Do I need to pay withholding tax on capital income from Icelandic securities?
Interest paid to non-residents is subject to withholding tax. However, non-residents can apply to the local tax commissioner for tax exemption/reduction if covered by treaty. To apply for a withholding tax exemption/redustion is a simple process and can be done through an agent.


What is the ISIN# of a particular bond?
Left-Click once with the mouse on the name of the security you need more information about on the banner on the right. That action will call forth detailed information about that instrument. For details, select show Attributes in the Market overview page.


What is the maturity of bond X?
Final maturity, date of interest and principal payments etc. are called forth with a left-click of the mouse on the name of a security on the banner to the right.


Is there a minimum amount, when I buy Icelandic bonds and open a custody account?
Each dealer sets his own rules for their service. Some have minimum amounts and others none. Fees for custody accounts are also different depending on deposit amount. For detailed information contact individual dealers


Where are Icelandic bonds traded?
Icelandic bonds are traded on NASDAQ OMX Nordic Exchange Iceland. (Members of OMX submit their bid and ask offers on the Exchange between 09:30 and 15:30 GMT each business day. Yield and price information are shown on our Market Overview page (15 min. delay).


What is the settlement rule in NASDAQ OMX Nordic Exchange Iceland for bonds?
Settlement takes place the next business day after trading or T+1.


Can I buy bonds myself at NASDAQ OMX Nordic Exchange Iceland?
No, you need to go through a member of NASDAQ OMX, preferably one of the Primary Dealers in Government Securities or HFF bonds


When is the currency market in Iceland open?
The currency market in Iceland is open from 9:15 to 16:00 GMT on business days.


What is the settlement standard in the Icelandic currency market?
In Iceland the standard is two days, T+2, for currency transactions.


Can I find information on Icelandic bonds on my Bloomberg terminal?
Yes, the Government Debt Management (GDM) and the Housing Financing Fund provide information on their Bloomberg pages ICDO and HFFI. Some Primary Dealers also have their own pages ISLA, KAUP, and LAIS. You can also find overview on the Icelandic TSY and Money Market on the page BTMM IC. For news type NI ICE GO.


Yield Curve

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Non-IndexedPriceYield
RIKV 13 0618 99.426.51%
RIKV 13 071598.986.32%
RIKV 13 081598.456.30%
RIKV 13 0916 97.906.33%
RIKV 13 101597.406.36%
RIKV 13 1115 97.006.12%
RIKB 14 0314 100.623.95%
RIKB 15 0408100.854.02%
RIKB 16 1013105.084.36%
RIKB 19 0226117.165.23%
RIKB 22 1026107.216.21%
RIKB 25 0612114.306.27%
RIKB 31 012499.006.59%
IndexedPriceYield
RIKS 21 0414111.352.22%
HFF150224107.452.37%
HFF150434111.802.58%
HFF150644114.002.76%

CPI Change

Current Value410.70
12 Months Change*3.95%
3 Months Change*8.73%
Last Month Change0.20%
Daily CPI411.14

* Annualized rates

Exchange rate

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