18 December 2008 The goal of the agreement with the Housing Financing Fund (HFF) is to strengthen price formation of housing bonds and to facilitate increased liquidity on the secondary market. The agreement entails that Straumur is obligated to present an offer at a minimum of ISK 300 million at nominal value for each auction of the Housing Financing Fund. Straumur is obligated to present on the secondary market (OMX Nordic Exchange Iceland) purchase and sales offers at a minimum of ISK 50 million at nominal value and to renew them within 10 minutes from such time they have been accepted. The maximum spread between purchase and sales offers is as follows, according to the housing-bond series: HFF 14: 0.50% HFF 24: 0.75% HFF 34: 0.85% HFF 44: 0.95% If Straumur has engaged in trading in one day in the amount of ISK 300 million at nominal value, Straumur is authorized to deviate from the maximum spread in the purchase and sales offers. The goal of the agreement with the Central Bank of Iceland is to maintain access by the National Treasury to loan capital and to strengthen price formation of government bonds on the market. The agreement entails Straumur being obligated to present an offer at a minimum of ISK 100 million at nominal value in every auction of government bonds. Straumur is obligated to present on the secondary market (OMX Nordic Exchange Iceland) purchase and sales offers at a minimum of ISK 50 million at nominal value and to renew them within 10 minutes from such time they have been accepted. The maximum spread between purchase and sales offers is as follows, according to the series of government bonds: Maturation 3-6 months: 0.10% Maturation 6-12 months: 0.15% Maturation 1-2 years: 0.20% Maturation 2-4 years: 0.30% Maturation 4-6 years: 0.40% Maturation 6-9 years: 0.70% Maturation 9 years or more: 0.90% In instances of the Maturation being three (3) months or less, Straumur is only obligated to present purchase offers. If Straumur has engaged in trading in one day in the amount of ISK 300 million at nominal value, Straumur is authorized to deviate from the maximum difference in the purchase and sales offers. For further information contact; Georg Andersen Head of Corporate Communications Mobile: +354 858 6707 georg@straumur.com
Straumur-Burdaras Investment bank hf ("Straumur") has entered into a market-making agreement with the Housing Financing Fund and the Central Bank of Iceland on behalf of the State Treasury
| Source: Straumur-Burðarás Fjárfestingabanki hf.