The Central Bank of Iceland - Government Debt Management, on behalf of the Republic of Icelandic, issues: Treasury Bills, Nominal Treasury Bonds and Inflation-linked (Indexed) 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, with annual coupon (RIKS 21, RIKS 30 and RIKS 33). 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 NASDAQ CSD Iceland hf (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 in 2021 and 2030 have been issued as  Benchmark series.
 
Type Symbol Maturity Status
Nominal T-Bond RIKB 19 0226 Maturing February 26th - year 2019 Benchmark
Nominal T-Bond RIKB 20 0205 Maturing February 5th - year 2020 Benchmark
Indexed 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
Nominal T-Bond RIKB 28 1115 Maturing November 15th - year 2028 Benchmark
Indexed T-Bond RIKS 30 0701 Maturing July 1st - year 2030 Benchmark
Nominal T-Bond Maturing January 24th - year 2031 Benchmark
Nominal 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 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.