Islandsbanki hf. : Covered bond tap issues

11.12.2013 - IR Releases

Íslandsbanki hf. has tapped into outstanding issues of covered bonds listed on NASDAQ OMX Iceland. The CPI-linked seven year issue, ISLA CBI 19, was tapped for an amount of ISK 600,000,000 at a real yield of 2.82 % and the CPI-linked twelve year issue, ISLA CBI 24, was tapped for an amount of ISK 380,000,000 at a real yield of 2.89 %.

Following these latest issues, the total amount issued in ISLA CBI 19 has reached ISK 6.63bn and ISLA CBI 24 has reached ISK 8.47bn. In total, Íslandsbanki has now issued covered bonds amounting to ISK 23.32bn since its inaugural issue in December 2011.
Sold to a broad group of investors, total appetite for the tap issue amounted to ISK 1.52bn, of which 64% of the offers were accepted. Trading is expected to commence on 18 December 2013 on the NASDAQ OMX Iceland. Market making for all of Íslandsbanki's covered bond issues is in the hands of MP bank.

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.