Proposals for amendments to the terms of the HFF bonds, issued by IL Fund, were approved by bondholder meetings on April 10th and the conditions for settlement was approved by the Icelandic Parliament on June 3rd.
The proposals were formulated by a negotiation committee appointed by the Minister of Finance and Economic Affairs, in collaboration with advisors, Arctica Finance and Logos, representing 18 pension funds.
The value of the bonds in the proposals was estimated at approximately ISK 651 billion. In the settlement, the IL Fund and the Icelandic State will deliver to creditors: government bonds valued at ISK 540 billion, other securities held by the IL Fund valued at ISK 38 billion, foreign currency equivalent to ISK 55 billion, and cash amounting to ISK 18 billion.
Arctica Finance has been involved in the project since October 2022, when the Ministry of Finance and Economic Affairs published a report on the status of the IL Fund. Over the past year, Arctica Finance has been part of the negotiation committee that developed the proposals presented in March 2025
