Only ISK CPI-linked mortgages in Íslandsbanki's covered bond pool
As Íslandsbanki has listed covered bonds on the NASDAQ OMX Iceland, the Bank would, in light of the ruling on mortgage loans in foreign currencies by the Supreme Court of Iceland 15 Feb 2012, like to make known:
As the underlying cover pool consists only of ISK CPI-linked mortgage loans, the ruling won’t affect Íslandsbanki‘s covered bond pool. Furthermore, the cover pool must withstand a weekly stress test and is regulated by the Icelandic Financial Supervisory Authority which additionally appoints an independent inspector to monitor the issue.
Íslandsbanki will carefully review the Court’s ruling and assess its possible impact on the Bank.