Information on the repurchase of Treasury Bonds from the Government of the Republic of Iceland
On June 28th, 2010, a first tranche of a loan granted by the Republic of Poland to the Republic of Iceland was drawn, according to the Loan Agreement dated October 4th, 2009 between the Government of Republic of Poland and the Government of Republic of Iceland and the Central Bank of Iceland. The value of the first tranche amounted to PLN 209,998,000.
According to the Agreement, the Republic of Iceland has used the means granted from the first tranche of the loan, in order of manage the foreign exchange reserves, to purchase the following long-term, PLN denominated Treasury Bonds.
| Series | Maturity date | ISIN Code | Face value (PLN) |
| DS1015 | 24.10.2015 | PL0000103602 | 48,755,000 |
| DS1017 | 25.10.2017 | PL0000104543 | 52,029,000 |
| DS1019 | 25.10.2019 | PL0000105441 | 52,006,000 |
| WS0922 | 23.09.2022 | PL0000102646 | 51,339,000 |
The above mentioned bonds has been sold in a manner specified in § 4.2 of the Ordinance of the Minister of Finance dated June 26th, 2006 on the General Terms of Issuing Treasury Bonds Offered at Auctions, after submitting the purchase bid by the Government of Iceland on June 18th, 2010, subsequently accepted by the Minister of Finance. The sale of the bonds increased the nominal value of outstanding benchmarks.
In March this year, the Government of the Republic of Iceland has requested the Government of Poland a right to early repay the loan and simultaneously submit the above mentioned bonds for repurchase. On May 27th, 2015, the Amendment to the Loan Agreement allowing such operation has been signed.
Pursuant to § 3.2 of the Ordinance of the Minister of Finance dated August 30th, 2013 on the Conditions of Issuing Treasury Bonds Offered thorough Wholesale Sales, the Minister of Finance has grantedthe Government of Republic of Iceland the right to provide the above mentioned Treasury Bonds for repurchase outside the auction. The Government of Republic of Iceland has presented the sale offer, which was accepted by the Minister of Finance. The repurchase transaction has been executed on May 29th, 2015. At the same day the repurchased bonds has been cancelled. The repurchase price has been set as the average of fixing prices published by BondSpot S.A. (the reference electronic market for Treasury Bonds ) on five consecutive days preceding the transaction. The repurchase prices are neutral for the Ministry of Finance as the bonds' market value is directly linked with the value of the repaid loan.
The details of the transaction are presented in the table below.
| Series | Maturity date | ISIN Code | Face value (PLN) | The repurchase price (PLN) |
| DS1015 | 24.10.2015 | PL0000103602 | 48,755,000 | 1019.10 |
| DS1017 | 25.10.2017 | PL0000104543 | 52,029,000 | 1079.10 |
| DS1019 | 25.10.2019 | PL0000105441 | 52,006,000 | 1131.90 |
| WS0922 | 23.09.2022 | PL0000102646 | 51,339,000 | 1200.10 |