Non CPI linked Covered bond tap issuance on NASDAQ OMX Iceland

03.05.2013 - IR Releases

Íslandsbanki hf. has tapped into an outstanding issuance of covered bonds. The non CPI linked three year issuance, ISLA CB 15, was tapped for an amount of ISK 780,000,000 at a real yield of 6.3%

Following this latest issuance, the total amount issued in ISLA CB 15 has now reached ISK 2,520,000,000. In total, Íslandsbanki has now issued covered bonds amounting to ISK 16,270,000,000 since its inaugural issuance in December 2011.

Total appetite for the tap issuance amounted to ISK 880,000,000 of which 89% of the offers were accepted. Trading is expected to commence on 10 May 2013 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.

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