Islandsbanki hf. : Íslandsbanki sells commercial paper
Íslandsbanki hf. has today sold 5 and 6 month commercial paper. The total issuance in each series cannot exceed ISK 1.5bn in nominal terms. The auction was structured so that bidders submitted bids at predetermined rates (prices). The 5 month commercial paper was sold at a simple rate of 5.80% (price: 97.5483) and the 6 month commercial paper at a simple rate of 5.85% (price: 97.1275).
Bids for ISK 760 million were accepted for the 5 month commercial paper and ISK 1,120 million for the 6 month commercial paper. Prior to the auction the total outstanding commercial paper amounted to ISK 4.62bn.
The commercial paper was sold to a broad group of investors. Trading is expected to commence on 15 October 2014 on Nasdaq Iceland.