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Islandsbanki hf.: Íslandsbanki issues SEK 500 million 10NC5 Tier 2 bond

Íslandsbanki has today issued a SEK 500 million 10NC5 Tier 2 at a spread of STIBOR +250. The bond is expected to be rated BBB- by S&P Global Ratings which is investment grade.This is Íslandsbanki’s second subordinated issue and it follows from a successful SEK 750 million Tier 2 debut issue in November 2017. That transaction was the first of its kind from an Icelandic bank in international capital markets since 2008.

Placement of the current transaction was focused towards investors across the Nordic region. Íslandsbanki is committed to maintaining a visible presence in Nordic local currency markets and to remain close to this important set of investors. The Bank has relatively limited scope to issue Tier 2 bonds, and this transaction takes the Bank substantially closer to fulfilling its requirements for the foreseeable future. Interest in the issue from international investors underlines their continued confidence in Íslandsbanki and the Icelandic economy.

The bonds will be issued under Íslandsbanki’ s USD 2,500m 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 www.islandsbanki.is/ir.

The bond is expected to be listed on the Irish Stock Exchange on 31 August 2018.

Joint bookrunners on the transaction were Danske Bank, Nordea and Swedbank.

For further information:

Investor Relations – Gunnar S. Magnusson, ir@islandsbanki.is and tel: +354 440 4665.

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