Reuters logo
Heavyweight U.S. fund Loomis Sayles says didn't accept Iceland deal
March 15, 2017 / 9:39 AM / 8 months ago

Heavyweight U.S. fund Loomis Sayles says didn't accept Iceland deal

LONDON (Reuters) - U.S. fund Loomis Sayles said on Wednesday it was not part of an agreement struck at the weekend by Iceland’s authorities to pay off funds whose assets were frozen as part of the capital controls the country imposed in a financial crisis in 2008.

Iceland’s central bank said on Sunday it had agreed to buy almost 90 billion Icelandic crown (668 million pounds) of so-called offshore crown assets, held mainly by four U.S. funds, at an exchange rate of 137.5 crowns per euro.

That was roughly half the amount that was frozen, but the bank did not name which of the funds - Autonomy Capital, Eaton Vance, Loomis Sayles and Discovery Capital Management - who hold the bulk of the bonds, were part of the deal.

“We declined participation,” a spokeswoman for Loomis Sayles told Reuters.

The Icelandic crown was trading on Wednesday at a rate of 117 per euro, almost 18 percent stronger than the rate at which the weekend deal was struck.

Autonomy Capital, Eaton Vance and Discovery Capital Management would not say whether or not they had accepted the offer.

($1 = 110.3300 Icelandic Crowns)

Reporting by Marc Jones; Editing by Hugh Lawson

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below