Reference is made to a press release from HF Fund, dated 17 November 2023, concerning the planned switch auction of Housing Financing Fund bond series HFF150434 (XS0195066575) and HFF150644 (XS0195066658).
On Friday 8 December 2023, HF Fund will hold two switch auctions.
In the first auction, to be held between 10:00 and 11:00 hrs., HF Fund offers to purchase HFF150644 at a clean price of 100.00, which is equivalent to a yield of 3.78%, against the delivery of the indexed Treasury bond series RIKS 33 0321 (IS0000021251) at a clean price of 102.150, which is equivalent to a yield of 2.73%. HF Fund offers to purchase HFF150644, against the delivery of up to the nominal amount of 12,589,739,923 in RIKS 33 0321.
In the second auction, to be held between 13:00 and 14:00 hrs., HF Fund offers to purchase HFF150434 at a clean price of 100.00, which is equivalent to a yield of 3.78%, against the delivery of the indexed Treasury bond series RIKS 30 0701 (IS0000020576) at a clean price of 102.400, which is equivalent to a yield of 2.84%. HF Fund offers to purchase HFF150434, against the delivery of up to the nominal amount of 12,150,000,000 in RIKS 30 0701.
Bids for the indexed bond series shall be submitted as nominal amounts.
The results of the switch auctions will be announced publicly after the market closes on the date of the auction. The settlement date for the transactions is Tuesday 12 December 2023.
HF Fund reserves the right to accept bids in part or to reject all bids.
The arranger for the switch auctions is Government Debt Management, a department of the Central Bank of Iceland. Primary dealers in Treasury securities are invited to act as intermediaries for the transactions (Arion banki hf., Fossar Investment Bank hf., Íslandsbanki hf., Kvika banki hf. and Landsbankinn hf.). The Bloomberg trading and auction system will be used.
Owners of Housing Financing Fund bonds that are interested in participating in the switch auctions are advised to contact primary dealers in Treasury securities.
The terms of auction can be found in the attachments.
Further information can be obtained from:
For HF Fund: Steinþór Pálsson, tel: +354 6160200, e-mail: verkefnisstjornil@fjr.is
For the arranger: Government Debt Management, tel: +354 5699635, +354 5699679, e-mail: lanamal@lanamal.is
Attachments
- Terms of Switch Auction - First auction 08.12.2023
- Terms of Switch Auction - Second auction 08.12.2023
