20 June 2014

Listing and sale of ESÍ assets postponed

According to a press release from 16 December 2013, the Central Bank of Iceland Holding Company ehf. (ESÍ) was planning to begin selling indexed bonds representing ESÍ’s holdings in contractual covered bonds issued by Arion Bank hf. during the first half of 2014.

It has been decided for the present to postpone the sale. The final arrangements will be announced at a later date. This will not affect ESÍ’s plans, announced in late 2013, to divest itself of the bonds in the next five years.

The sale is being postponed because Arion Bank, in consultation with the Financial Supervisory Authority (FME), is examining whether it is possible to list the bonds in question directly, in accordance with the Act on Covered Bonds, no. 11/2008. If this proves impossible, the bonds will be sold according to the process prepared in collaboration with Summa Rekstrarfélag hf.

As of year-end 2013, ESÍ’s balance sheet was about 295 b.kr. in size. As early as this year, debtors will pay at least 20 b.kr. in excess of scheduled payments on their debts.

Further information can be obtained from Haukur C. Benediktsson, Managing Director of ESÍ, at tel: +354 568 7744.

No. 21/2014
20 June 2014