Íslandsbanki has concluded an auction of an unsecured bond issue for Icelandair Group hf. The US$ 23,660,000 transaction has a five year tenor, and pays a fixed coupon of 4.25%. The transaction was placed with Icelandic institutional investors in December. The bonds will be listed on the NASDAQ Iceland Main Market with Íslandsbanki Corporate Finance acting as listing adviser. The proceeds from the issue are for general corporate purposes. Icelandair has expanded its route network in recent years, and signed a commitment with Boeing to begin renovating its fleet in the next 3 years. This bond issue is one of very few foreign currency corporate sector bonds to emerge from Iceland since 2008, and is a token of the progress being made in the rebuilding of capital markets in the country.
Tryggvi Björn Davíðsson, Managing Director of Markets:
"Íslandsbanki has played a key role in the reconstruction of the financial market in Iceland, including stock market listing. This issuance is a major milestone in the opening of a new corporate bond market and is an important step in the development of the securities markets. Íslandsbanki will continue to focus on developing and expanding the bond market in an effort to make it a viable option for more companies in the near future. "