Treasury successfully issues its inaugural Green bond

14.03.24
Treasury successfully issues its inaugural Green bond

Today the Republic of Iceland issued a green bond in the amount of 750 million euros, the equivalent of ISK 111 bn. The bond bears a 3.5% fixed rate coupon, a reoffer yield of 3,636% and a 10 year maturity. The bonds are issued off Iceland´s Sustainable Financing Framework.

Investors showed remarkable interest, with demand totaling EUR 7 bn, or more than nine times the issue size. The investor group includes Central banks, official institutions, bank treasuries, insurance companies, and other institutional investors, mainly from Northern Europe. Joint lead managers for the issue were JP Morgan, BNP Paribas, DZ bank and Nomura.

“It is particularly gratifying to see the confidence shown in our first green bond issue from a broad group of international investors. It is a sign of the credibility of Iceland’s fiscal and environmental policies, which underscore the international commitments we have taken on. This keen interest is also a sign of investors’ trust in Iceland and of the country’s image as an exemplar of sound environmental policy,” said Minister of Finance and Economic Affairs, Thordis Kolbrun Reykfjord Gylfadottir.

The investor group included around 280 investors. This is the largest number of investors who have ever participated in a Republic of Iceland´s transaction, and an unprecedented eight times level of over-subscription. 

“This bond issue is in line with our Government debt strategy, as well as being part of our climate action plan. The proceeds from the issue will be used to finance the Government’s expenses due to environmental issues in coming years. This financing better enables us to face the challenges that lie ahead. Strong demand and favourable terms also bear witness to investors’ confidence in Iceland’s economic and fiscal policy,” said Thordis Kolbrun Reykfjord Gylfadottir.

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Aðrar fréttir

Feb 19 2025
Nominal Treasury Bonds
Treasury Bond Auction Announcement - RIKB 38 0215 - New Series - Switch Auction or Cash
Series RIKB 38 0215
ISIN IS0000037265
Maturity Date 02/15/2038
Auction Date 02/21/2025
Settlement Date 02/26/2025
10% addition 02/25/2025
 
Buyback issue RIKB 25 0612
Buyback price (clean) 99.8400

On the Auction Date, between 10:30 a.m. and 11:00 a.m., 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. Article 6 of the General Terms of Auction for Treasury bonds applies for the right to purchase an additional 10%. The Treasury bonds will be delivered in electronic form on the Settlement Date.

Payment for the bonds can be made in cash or with the Buyback issue at the Buyback price.

Payment in cash for the Treasury bonds must be received by the Central Bank before 14:00 on the Settlement Date. If payment is made with the Buyback issue, a notification of the amount must be received no later than by 14:00 on the Auction Date. In that case, the value of the Buyback bond is determined by the Buyback price plus accrued interest (i.e. dirty price).

No fee is paid in relation to the purchase of RIKB 25 0612.

Further reference is made to 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.
Feb 15 2025
Credit Rating
Fitch Affirms Iceland at ‘A’; Outlook Stable

Fitch Ratings has affirmed Iceland's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'A' with a Stable Outlook. 

Iceland's 'A' rating is underpinned by very high income per capita and governance indicators akin to 'AAA' and 'AA' category sovereigns. Strong fundamentals include sizeable pension fund assets, a sound banking sector, and resilient private sector balance sheets. Ample foreign reserves help mitigate Iceland's external vulnerabilities. The rating remains constrained by Iceland's small economy with limited export diversification. 

Increased confidence in a sharp and sustained decline in the government debt-to-GDP ratio and higher trend growth and/or evidence of economic diversification that reduces Iceland's vulnerability to external shocks, could lead to a positive rating action. 

A marked deterioration in the debt-to-GDP ratio, from a sustained period of fiscal loosening and a severe economic shock, for example, due to a sharp correction in the real estate market, could lead to a negative rating action.  

Further information on www.government.is

Feb 13 2025
Treasury Bills
Treasury Bill Auction Announcement - RIKV 25 0521 - RIKV 25 0820
Series RIKV 25 0521 RIKV 25 0820
ISIN IS0000036986 IS0000037216
Maturity Date 05/21/2025 08/20/2025
Auction Date 02/17/2025 02/17/2025
Settlement Date 02/19/2025 02/19/2025

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 numbers and with the Maturity Dates 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 additional information please contact Oddgeir Gunnarsson, Government Debt Management, at +354 569 9635.