Landsbankinn hf. has today issued 500 million of senior unsecured bonds, equivalent to around ISK 65 billion. The bonds have a 4.5 year maturity with a fixed 1.625% coupon and were priced at terms equivalent to 190 basis point spread above mid-swaps in euros.
The bonds were sold to institutional investors in Scandinavia, the UK and Continental Europe. The final order book amounted to around 1.5 billion, three times oversubscribed, from over 130 investors. The bonds are issued under Landsbankinn's Medium Term Note (EMTN) Programme and will be listed on the Irish Stock Exchange on the 15th of September.
Landsbankinn will use the proceeds to pre-pay a part of the bank's existing funding in addition to strengthening the bank's liquidity further.
Joint lead managers on the transaction were: Barclays, Citigroup and Deutsche bank
Steinþór Pálsson, CEO of Landsbankinn:
"Today's issuance is an enjoyable milestone for Landsbankinn. The bank is reaching its goal to lower funding cost significantly and at the same time lengthening the maturity of its market funding.
Strong interest from investors highlights the increased confidence among international investors in Landsbankinn as well as the positive economic development that Iceland has experienced. Better terms and increased access to foreign capital markets enables Landsbankinn to continue to play a leading role in servicing Icelandic businesses."
Detailed information about Landsbankinn for investors and others stakeholders are available at: http://corporate.landsbankinn.com/investor-relations/
Investor relations: Hanna Kristin Thoroddsen ; [email protected] ; Tel: +354 410 7100
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Landsbankinn hf. via Globenewswire