Íslandsbanki: Two covered bond tap issuances on NASDAQ OMX Iceland

13.12.2012 - IR Releases

Íslandsbanki hf. has today concluded an offering of three outstanding issuances of covered bonds; ISLA CBI 19, ISLA CBI 24 and ISLA CB 15 that are listed on NASDAQ OMX Iceland. The 7 year CPI-linked issuance, ISLA CBI 19, was tapped for an amount of ISK 610,000,000 at a real yield of 2.72% and the 12 year CPI-linked issuance, ISLA CBI 24, was tapped for an amount of ISK 1,410,000,000 at a real yield of 3.13%. The non-indexed three year issuance, ISLA CB 15, was not tapped at this time.

Following these latest issuances the total amount issued in ISLA CBI 19 and ISLA CBI 24 has now reached ISK 3,470,000,000 and ISK 4,710,000,000 respectively. In total, Íslandsbanki has now issued covered bonds amounting to ISK 13,420,000,000 since its inaugural issuance in December 2011.

Sold to a broad group of institutional investors, total appetite for the tap issuances amounted to ISK 3,260,000,000, of which 62% of offers were accepted, or for the amount of ISK 2,020,000,000.

Trading is expected to commence on 20 December 2012 on the NASDAQ OMX Iceland. Market making for all of Íslandsbanki’s covered bond issues is in the hands of MP banki.

The bonds are issued under Act 11/ 2008 on Covered Bonds which obliges the issuer to fulfil strict requirements, whereby the underlying cover pool must withstand a weekly stress test with regards to interest rates and exchange rates. The issuances are regulated by the Icelandic Financial Supervisory Authority which additionally appoints an independent inspector to monitor the issuances. Special cover pool reports on the covered bond issuances are published quarterly and can be found on Íslandsbanki’s web.