Correction: Islandsbanki hf: Concludes covered bond offering
This is a correction of the announcement from 17:40 23.05.2017 GMT. Reason for the correction: ISK 200m offer was missing from the amount sold in ISLA CBI 30 and in total demand in the previous announcement. The following announcement has been updated to reflect this correction:
Íslandsbanki hf. has today concluded an offering of covered bonds.
Total demand amounted to ISK 16,790m.
The CPI-linked issue ISLA CBI 22 was sold for an amount of ISK 4,420m at a yield of 3.05%. Total offers received amounted to ISK 4,420m at 3.05%. Following the tap issuance, the total amount issued will be ISK 17,340m.
The CPI-linked issue ISLA CBI 24 was sold for an amount of ISK 4,060m at a yield of 3,02%. Total offers received amounted to ISK 4,100m ranging from 3.02% - 3.05%. Following the tap issuance, the total amount issued will be ISK 14,000m.
The new CPI-linked issue ISLA CBI 30 was sold for an amount of ISK 6,360m at a yield of 2.85%. Total offers received amounted to ISK 8,270m ranging from 2.78% - 3.00%.
In addition the series was tapped for ISK 960m for bond lending purposes in relation to market makers. Following the tap issuance, the total amount issued will be ISK 7,320m.
Trading is expected to commence on 30 May 2017 on Nasdaq Iceland.
So far this year Íslandsbanki has issued covered bonds in the amount of ISK 28,520m. The total nominal amount of outstanding covered bonds issued by Íslandsbanki will be to ISK 93,220m after the auction.
The proceeds of the transaction will largely be used to refinance existing asset backed bond, originally issued to the Central Bank of Iceland Asset Holding Company's (ESÍ).
The Bank's covered bond issuance plan, for the year 2017, will as a result be considered for amendment.