The Republic of Iceland – Government Debt Management said Iceland has met its annual bond issuance goal, with sales just below ISK 200 billion, and will hold a switch auction on Nov. 6.
In a switch auction, participants use an existing government bond to pay for the bonds being offered. The Nov. 6 sale will offer RIKB 35 0917, which matures Sept. 17, 2035, and RIKS 37 0115, which matures Jan. 15, 2037. The listed ISINs are IS0000035574 and IS0000033793, respectively.
The auction window is 5:30 to 6 a.m. ET (10:30 to 11 UTC). Both issues are scheduled to settle Nov. 11, when the new bonds will be delivered electronically. RIKB 27 0415 is the only accepted payment issue, and the terms do not allow cash settlement.
The clean price for RIKB 27 0415 is 99.8700. Accrued interest is added when calculating the bond’s dirty price. The notice states that no fee is paid in connection with purchasing the series.
Participants must deliver RIKB 27 0415 to the Central Bank before 9 a.m. ET (14:00 UTC) on Nov. 11. RIKS 37 0115 was also included in an Oct. 23 auction, where the accepted yield was 2.848%, according to EconoTimes’ report on the auction results.
