ISSUE DESCRIPTION
CERTIFICATES OF DEPOSIT
CENTRAL BANK OF ICELAND
ISSUE OF SHORT-TERM BONDS THROUGH THE SYSTEM OF
ICELANDIC SECURITIES DEPOSITORY HF.
SECTION 1
General information on the issuer
1.1 Name of issuer, national ID number, authorisation for issue, date of establishment,
registered address, and head office address if different from registered address.
The issuer is the Central Bank of Iceland, national ID no. 560269-4129,
Kalkofnsvegur 1, 150 Reykjavík. The issue is authorised by Article 9 of the Act on
the Central Bank of Iceland, no. 36/2001.
1.2 Names and national ID numbers of responsible parties on behalf of the issuer.
Sigurdur Sturla Pálsson, national ID no. 310166-4569
1.3 Legislative framework according to which the issuer operates, if special legislation
governs his activities.
The Act on the Central Bank of Iceland, no. 36/2001
SECTION 2
Information on the issue
2.1 Recipient of payments and other information provided by the issuer about the
issue: name(s), telephone number(s), and e-mail address(es)
Gerdur Ísberg, national ID no.
gerdur.isberg@sedlabanki.is
+354 569-9635
Erla Árnadóttir
erla.arnadottir@sedlabanki.is
+354 569-9848
2.2 Main identifying characteristics of the issue, nominal value and other conditions
that concern the issue and oblige the issuer.
Identification: no. SI 08 0924
Type of securities: The securities are short-term bonds, so-called certificates of
deposit, in accordance with the Rules on Central Bank of Iceland Facilities for
Financial Undertakings, no. 35, dated January 17, 2008, bearing post-paid weekly
interest and a single payment of the principal amount on September 24, 2008.
ISIN: IS0000017663
Total authorisation according to agreement: ISK 50,000,000,000.00 (fifty billion
Icelandic krónur)
The issuer is authorised to increase the original total amount of the issue of this series.
Current issue: 50,000,000,000.00 (fifty billion Icelandic krónur)
Securities will be sold from the series each Wednesday, beginning on March 26,
2008, and ending on September 17, 2008.
Nominal value units: 100,000,000.00 (one hundred million Icelandic krónur)
Date of issue: March 26, 2008
Maturity date: September 24, 2008
Indexation: No
Nominal interest rate: The nominal interest rate of the certificates of deposit is
variable but is fixed for one week at a time; it is the same as the interest rate on
certificates of deposit as advertised by the Central Bank. The current rate is 14.75%
per annum. The day count formula for calculating interest is A/360.
First interest date: March 26, 2008.
Interest payment dates: Each Wednesday from April 2, 2008 through September 24,
2008.
First interest payment date: April 2, 2008
Number of payment dates per year: No payment date for principal. Interest is paid
weekly.
Currency: Icelandic krónur
Transfer: The certificates of deposit are transferable; however, it is only permissible
to transfer them to parties specified by name. They are issued electronically through
the system of the Icelandic Securities Depository hf., and account operators as defined
pursuant to the Act on Electronic Registration of Title to Securities, no. 131/1997, are
authorised to act as intermediaries in their transfer.
Stamp fees: The certificates of deposit are exempt from stamp fees pursuant to
Article 36, Paragraph 2 of the Act on the Central Bank of Iceland, no. 36/2001.
Matters of dispute: Any dispute arising as a result of this issue description or of the
certificates of deposit shall be referred to the District Court of Reykjavík in
accordance with the provisions of Chapter 17 of Act no. 91/1991, the Code of Civil
Procedure.
Authorisation: The issue is authorised by Article 9 of the Act on the Central Bank of
Iceland, no. 36/2001.
2.3 Benefits related to the bonds, their calculation, and their use.
The bonds are not accompanies by any benefits.
2.4 Tax on income from the bonds that is withheld for payment in the country of origin
and/or the country of registration. Account shall be given of whether the issuer
guarantees that withholding tax will be deducted.
Tax treatment of the certificates of deposit shall be handled in accordance with
current tax law at any given time.
2.5 VS account of the issuer.
VS account no. 912156 for the Central Bank of Iceland, national ID no. 560269-4129.
2.6 Other information on the proposed issue or issuer that the Icelandic Securities
Depository considers necessary.
Pursuant to Article 9 of the Act on the Central Bank of Iceland, no. 36/2001, the Bank
is authorised to issue transferable securities for sale to credit institutions that may
engage in deposit transactions with the Bank. Stipulations concerning interactions
between these parties can be found in the Rules on Central Bank of Iceland Facilities
for Financial Undertakings, no. 35, dated January 17, 2008. Furthermore, reference is
made to the general terms governing Central Bank facilities for financial
undertakings; cf. Article 17 of the cited Rules.
Each Wednesday, from March 26, 2008, through September 17, 2008 – that is, on
each transaction date for regular transactions according to Article 6 of the cited Rules
– the Central Bank may issue certificates of deposit in accordance with this issue
description, to those credit institutions that request such issue.
SECTION 3
Information on the parties responsible for preparing the issue
description and auditing the annual accounts
3.1 Names, e-mail addresses, and telephone numbers of the parties responsible for
preparing the issue description.
Sigurdur Sturla Pálsson sturla.palsson@sedlabanki.is +354 569-9638
Gerdur Ísberg gerdur.isberg@sedlabanki.is +354 569-9635
Sigurdur G Thoroddsen sigurdur.g.thoroddsen@sedlabanki.is +354 569-9625
3.2 Name and national ID number of the issuer’s chartered auditors for the past three
years.
National Audit Bureau, Skúlagata 57, 105 Reykjavík, national ID no. 540269-1819
SECTION 4
Documents accompanying the issue description
4.1 Public registry certification of the establishment of the issuer.
Not applicable
4.2 Confirmation that the issuer has formally decided on the proposed electronic issue
or other pertinent documents, such as a ratified copy of meeting minutes or a
reference to legislation or rules applying to the issue.
Not applicable
4.3 Copy of receipt from the Commissioner confirming that stamp fees have been paid,
if applicable.
Not applicable
4.4 Name of original seller(s) if the issue is new or supplementary, and a copy of the
issuer’s contractual agreement with the seller(s).
Not applicable
4.5 Upon request by the Icelandic Securities Depository, a ratified declaration by a
District Court Judge confirming that the issuer has not been subjected to
bankruptcy proceedings.
Not applicable
4.6 Other accompanying documents that pertain to the proposed issue and that the
Icelandic Securities Depository considers necessary.
Reykjavík, March 25, 2008
THE CENTRAL BANK OF ICELAND