Islandsbanki hf. : Covered bond issues

15.09.2014 - IR Releases

Íslandsbanki hf. has concluded an auction of CPI-linked covered bonds listed on NASDAQ OMX Iceland where ISLA CBI 20 was tapped for an amount of ISK 1,140,000,000 at a nominal yield of 3.50%.

Following this latest issue, the total amount issued in ISLA CBI 20 has reached ISK 2.1bn. In total, Íslandsbanki has now issued covered bonds amounting to ISK 29.47bn since its inaugural issue in December 2011.

Sold to a broad group of investors, total appetite for the issue amounted to ISK 1.48bn, of which 77% of the offers were accepted. Trading is expected to commence on 22 September 2014 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.