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Íslandsbanki issues SEK 750 million Additional Tier 1 notes

Íslandsbanki hf. has today launched its inaugural issue of Additional Tier 1 notes as part of its plan to optimise its capital structure. The issue of SEK 750 million perpetual notes with a 5-year call was placed with investors across Scandinavia and continental Europe and was considerably oversubscribed.

The transaction pays a coupon of 3-month STIBOR +475 basis points for the life of the notes and features a temporary write-down structure, a 5.125% CET 1 trigger. The Notes are expected to be rated BB- by Standard & Poors. The issue will be listed on GEM Euronext Dublin on 28 September 2021.

Sole Structuring Advisor is UBS Investment Bank. Joint Lead Managers are Danske Bank A/S, Skandinaviska Enskilda Banken AB (Publ) and UBS Investment Bank.

I am greatly encouraged by the warm reception with which this highly significant issue has met. The issue marks an important step in the Bank's ambition to drive efficiencies in its capital formation whilst maintaining strong capitalisation. The high demand reflects investors’ strong confidence in Íslandsbanki and the Icelandic economy. We have worked hard, in recent years, to build a following with investors across Europe, not least in the Nordic countries and we place a high value on those relationships. All of the Bank’s subordinated issuance has been in Swedish kronas and this Additional Tier 1 issue is the next chapter in the story.

Birna Einarsdóttir
CEO of Íslandbanki:

For fur­ther inform­a­tion:

Mar­grét Lilja Hrafnkels­dót­tir

Investor Relations

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Björn Berg Gunnarsson

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