Republic of Iceland issues a new Eurobond at the lowest yields in the Republic´s history

13.06.19
Republic of Iceland issues a new Eurobond at the lowest yields in the Republic´s history

The Republic of Iceland has today concluded agreements on issuance of bonds totalling EUR 500 million, or the equivalent of ISK 71 billion.  

The bonds bear fixed interest of 0.1% and have a 5-year maturity, with a yield of 0.122%. This is the lowest yield in the history of the Republic. Investors showed strong interest in the issue, with total subscriptions around EUR 2,5 billion or five times the size of the issue.  The broad-based investor group is comprised of central banks and other institutional investors, mainly from Europe. Barclays, JP Morgan, Morgan Stanley and Nomura were joint managers for the issue.

Yesterday an offer of buy back of existing bonds of 750 million euros issued in 2014 expired. Owners of 60.5 million euros accepted the offer, in addition to those 398 million already tendered in December 2017. Owners that wished for got a priority allocation in the new bond.

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Aðrar fréttir

Mar 31 2026
Annual prospects
Quarterly Government Debt Management Prospect

Q2/2026

  • In Q2, government bonds will be offered for sale in the amount of 40-60 b.kr. market value.
  • A new nominal government bond maturing in 2029 will be issued during the quarter, and market making is planned for the series.
  • The bonds that could conceivably be offered are all benchmark Government series, and issue size and market conditions will determine how much, if any, will be sold in each series.
  • It is possible that switch auctions of RIKB 26 1015 will be held during the quarter.

GDM Q2 Prospect 2026.pdf

Mar 20 2026
Primary Dealers for Government Securities
Signing of Primary Dealer Agreements

Today the Government Debt Management on behalf of the Treasury and primary dealers signed agreements regarding issuance and market making in Treasury securities. The objective of the agreements is to maintain the Treasury’s access to financing, to enhance price formation in the secondary market for Treasury securities and promote an active system of benchmark issues in Iceland.

As of 1 April 2026, five financial institutions have been appointed as “primary dealers in Treasury securities”. They are: Arion Banki hf., Fossar Investment Bank hf., Islandsbanki hf., Kvika banki hf. and Landsbankinn hf.

The following bullet points describe the main content of the primary dealer agreement:

  • Primary dealers have the exclusive right to submit bids at auctions where government securities are offered for purchase or sale.
  • Primary dealers have exclusive access to special facilities such as repurchase agreements offered by the Government Debt Management on behalf of the Treasury.
  • Primary dealers are obliged to submit bids at each auction for a minimum of 100 m.kr. nominal value.
  • Primary dealers are Market Makers in the secondary market for government bond benchmark series. They are obliged to submit bid and ask offers on the stock exchange for at least 50 to 100 m.kr. nominal value in each benchmark series (as laid out in the agreements).
  • Primary dealers are in their bid and ask quotes governed by maximum spreads as laid out in the agreements.
  • Primary dealers are obliged to renew their offers within ten minutes after execution of transaction. The primary dealer is entitled to depart from the maximum spread requirement if certain conditions are fulfilled.
  • The agreement is valid from 1 April 2026 to 31 March 2027.

Further information can be obtained from Government Debt Management at the following email address: [email protected].