Islandsbanki hf.: Íslandsbanki issues 10NC5 Tier 2 bond of SEK 750 million

16.11.2017 - IR Releases

Íslandsbanki has today issued a SEK 750m 10NC5 Tier 2 transaction. The bond pays a quarterly coupon of 3 month STIBOR +200bps. The bond has an investment grade rating of BBB- from S&P Global Ratings.
Demand was high for the issue which was sold to a broad spectrum of investors in the Nordics and continental Europe. The bond is expected to be listed on the Irish Stock Exchange on 23 November 2017.

This is the first subordinated issue from an Icelandic bank in the international capital markets since 2008 and marks a significant step in normalising the liability side of Íslandsbanki's balance sheet.
There have been favourable developments in the Bank's foreign currency secondary spreads in recent months which marks investors' increasing confidence in the Bank and in Iceland's economy. In late October, S&P upgraded Íslandsbanki's rating to BBB+ on improving operating environment for the Icelandic banking system following the liberalisation of capital controls and declining private sector debt. Íslandsbanki is the only bank in Iceland with a credit rating from two international rating agencies.

The bonds will be issued under Íslandsbanki's EUR 2,000m Global Medium Term Note (GMTN) Programme which enables Íslandsbanki to issue bonds in a broad range of currencies at fixed or floating interest rates. The GMTN Base Prospectus and its supplements are available at
Joint bookrunners on the transaction were Danske Bank, DNB Markets and Pareto Securities.
Jon Gudni Omarsson, CFO of Íslandsbanki:

"We at Íslandsbanki are very pleased with the transaction and the great interest we have felt from investors. Many of these investors have benefitted from investments in Íslandsbanki's senior bonds in recent years and their participation in this issuance show their continued confidence in the Bank and the Icelandic economy."

Older news

Íslandsbanki issues EUR 300m bond and announces partial buyback of its 2020 EUR 500m bond

04.04.2019 - IR Releases
Íslandsbanki has today issued a EUR 300m 1.125% fixed rate senior unsecured bond for 3 years, at a spread of 130 basis points over mid-swaps.More

Annual General Meeting 2019 - agenda, candidates and proposals

The Annual General Meeting of Íslandsbanki hf. will be held on March 21, 2019 at the Bank's headquarters, Hagasmári 3, 201 Kópavogur at 15:00.More

Publication of 2018 Annual Report and Pillar 3 Report

13.02.2019 - IR Releases
Íslandsbanki has published an Annual Report and Pillar 3 Report for 2018. More

Annual Results 2018

13.02.2019 - IR Releases
The Bank and Íslandssjóðir turned in a good operating performance during the year, with a consolidated profit of ISK 10.6bn, while operational...More

Publication of 2018 year-end results

30.01.2019 - IR Releases
Close of business Wednesday, 13 February 2019More

Íslandsbanki to terminate credit rating contract with Fitch Ratings

30.01.2019 - IR Releases
Íslandsbanki informs that following expiration and by agreement of parties, the credit rating service contract between Fitch Ratings and Íslandsbanki...More

Ásmundur Tryggvason to direct Corporate and Investment Banking

Ásmundur Tryggvason has been engaged as director of Corporate and Investment Banking at Íslandsbanki. He replaces Vilhelm Már Þorsteinsson, who will...More