04.04.2017

Purchase of offshore krónur by the Central Bank of Iceland

With reference to press releases issued by the Central Bank on 12 and 23 March 2017, the Bank offers to purchase offshore króna assets as these are defined in the Act on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 37/2016, in cash and for euros, at an exchange rate of 137.5 krónur per euro. This offer applies to deposits, bills, and bonds issued by the Treasury or the Housing Financing Fund (HFF), and Central Bank certificates of deposit (CBI2016) (ISIN IS0000027068). Offshore króna assets in the form of deposits shall be exchanged for Central Bank certificates of deposit prior to the transaction. The price of offshore króna assets will be based on the best bid at the close of business on 10 March 2017, as is specified in the table below, plus accrued interest at the settlement date. All payments on behalf of the Central Bank will be made through the intermediation of Morgan Stanley in London.

This offer extends to foreign financial institutions, funds, and eligible counterparties that satisfy all internal approvals and conditions including KYC, AML, and credit checks vis-à-vis Morgan Stanley & Co. International plc. Such parties may conduct transactions on their own accounts or on behalf of their customers. Owners of offshore krónur shall contact the custodian of the assets in question as regards trades and settlement, as it should be noted that both deadlines to submit trades and settlement dates may differ from one custodian to another.

Trade requests must be received by Morgan Stanley by the end of day on Friday 28 April 2017, with settlement occurring as soon as reasonably practicable.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, and Sturla Pálsson, Director of Treasury and Market Operations, at tel: +354 569-9600. Inquiries regarding the execution of trades can be sent by e-mail to offshore@sedlabanki.is.

ISIN

Temporary ISIN

Series

Clean Bid Price

(As of close March 10th 2017)

IS0000017077

IS0000027266

RIKB 19 0226

107,15

IS0000019453

IS0000027191

RIKH 18 1009

99,75

IS0000024453

IS0000027209

RIKB 20 0205

103,50

IS0000020014

IS0000027175

RIKS 21 0414

103,56

IS0000020717

IS0000027282

RIKB 22 1026

111,26

IS0000019321

IS0000027233

RIKB 25 0612

120,41

IS0000020386

IS0000027241

RIKB 31 0124

114,97

XS0195066146

 

HFF150224

102,36

XS0195066575

 

HFF150434

108,51*

XS0195066658

 

HFF150644

114,01

IS0000027936

IS0000027993

RIKV 17 0515

99,00

IS0000027068

 

CBI2016

100,00

 *Settlement on or after 15 April 2017 lowers the clean price due to amortization.

 

No. 12/2017
4 April 2017

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