Íslandsbanki has today concluded the sale of two Tier 2 bonds for ISK 10,520m.
An index linked bond ISB T2i 33 0417 was sold for an amount of ISK 9,020m at a yield of 4.95%. The bond is a zero-coupon bond with quarterly interest payments and a final maturity date on 17 April 2033. The issuer has the right to call the bond at par on 17 April 2028 and on every interest payment date thereafter.
A non-index linked bond ISB T2 33 0417 was sold for an amount of ISK 1,500m at a yield of 8.90%. The bond is a zero-coupon bond with quarterly interest payments and a final maturity date on 17 April 2033. The issuer has the right to call the bond at par on 17 April 2028 and on every interest payment date thereafter.
The bonds will be issued under Íslandsbanki’s USD 2,500m Euro Medium Term Note (EMTN) Programme which enables Íslandsbanki to issue bonds in a broad range of currencies at fixed or floating interest rates. The EMTN Base Prospectus and its supplements are available at https://www.islandsbanki.is/en/landing/about/investor-relations.
The bonds are expected to be listed on the Nasdaq Iceland on 17 October 2022.
The transaction was managed by Íslandsbanki´s Capital Markets.