Islandsbanki hf. : Euro-denominated bond tap issue of EUR 125m

02.12.2015 - IR Releases

Íslandsbanki has issued a EUR 125m (ISK 17.6bn) tap of its existing EUR 100m bond maturing in 2018. This is Bank's 6th foreign currency denominated issue this year.

The senior unsecured short 3-year bond bears a fixed coupon of 2.875%, or equivalent to a spread of 290bps over Euro mid-swaps. The issue was sold to a broad spectrum of investors in the Nordics, UK and Europe.

The bond is expected to be listed on the Irish Stock Exchange on 11 December 2015.

The bonds are issued under Íslandsbanki's EUR 750m 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

Joint bookrunners on the transaction were Bank of America Merrill Lynch, Citigroup, and Deutsche Bank AG.

Birna Einarsdóttir, CEO of Íslandsbanki:
"With the EUR 125m tap issue we continue to diversify our funding profile, and improving the liquidity of the July 2018 EUR issue as the total size is now EUR 225m. In total, the Bank has issued EUR 225m, NOK 500m and SEK 600m in 2015. Good demand for the Bank's bonds are a welcome sign of confidence in Íslandsbanki and its recovery path in creating a strong and responsible bank."