Islandsbanki hf.: Íslandsbanki successfully issues innovative EUR 300m callable 6-year bond (6NC5)
Íslandsbanki has today issued a EUR 300m 6NC5 1.125% fixed rate senior unsecured bond, at a spread of 75 basis points over 5-year mid-swaps.
The issue was more than four times oversubscribed, with total demand for the transaction amounting to EUR 1,255m from 121 investors. The bonds were sold to a diversified spectrum of investors, including in the UK, continental Europe, Scandinavia and Asia. The bond is expected to be listed on the Irish Stock Exchange on 19 January 2018.
This issue, the longest-dated and most tightly-priced benchmark bond from an Icelandic financial institution since 2008, is a significant achievement for the Bank.
The bonds will be issued under Íslandsbanki's USD 2,000m Global Medium Term Note (GMTN) Programme. The GMTN Base Prospectus and its supplements are available at www.islandsbanki.is/ir.
Joint bookrunners on the transaction were Goldman Sachs International, J.P. Morgan and Nomura.
Jon Gudni Omarsson, CFO of Íslandsbanki:
"Recent spread developments for the Bank's bonds issued in foreign currencies have been very positive which demonstrates investors' continued confidence in the Bank and the Icelandic economy. Today's issue clearly reflects this and we are very pleased with the transaction and the great interest we received from investors."