Íslandsbanki has today issued a SEK 500 million 10NC5 Tier 2 at a spread of STIBOR +250. The bond is expected to be rated BBB- by S&P Global Ratings which is investment grade.This is Íslandsbanki’s second subordinated issue and it follows from a successful SEK 750 million Tier 2 debut issue in November 2017. That transaction was the first of its kind from an Icelandic bank in international capital markets since 2008.
Placement of the current transaction was focused towards investors across the Nordic region. Íslandsbanki is committed to maintaining a visible presence in Nordic local currency markets and to remain close to this important set of investors. The Bank has relatively limited scope to issue Tier 2 bonds, and this transaction takes the Bank substantially closer to fulfilling its requirements for the foreseeable future. Interest in the issue from international investors underlines their continued confidence in Íslandsbanki and the Icelandic economy.
The bonds will be issued under Íslandsbanki’ s USD 2,500m 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 www.islandsbanki.is/ir.
The bond is expected to be listed on the Irish Stock Exchange on 31 August 2018.
Joint bookrunners on the transaction were Danske Bank, Nordea and Swedbank.
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About Íslandsbanki
A leader in financial services in Iceland, Íslandsbanki is a universal bank with total assets of ISK 1,112bn (about EUR8.9bn) and a 25% - 50% market share across all domestic business segments. Building on over 140 years of servicing key industries, Íslandsbanki has developed specific expertise in tourism, seafood and energy related industries. Driven by the vision to be #1 for service, Íslandsbanki’s relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank’ s customers. Íslandsbanki has developed a wide range of online services such as the Íslandsbanki, Kreditkort and Kass apps, enabling customers to do their banking whenever and wherever. At the same time, the Bank continues to operate the most efficient branch network in Iceland through its strategically located 14 branches. For the fifth consecutive year, Íslandsbanki led the Icelandic Customer Satisfactory Index for banks in 2017 and was also named Best Bank of Iceland in 2018 by Euromoney and Bank of the Year in 2017 in Iceland by the Banker. Íslandsbanki has a BBB+/A-2 rating from S&P Global Ratings and BBB/F3 from Fitch Ratings and is the only bank in Iceland rated by two international rating agencies. www.islandsbanki.is
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