Heimar hf. Initiates Exciting Green Bond Offering Soon
Heimar hf. Announces a New Bond Offering
Heimar hf. (Nasdaq: HEIMAR) is set to launch an exciting bond offering that aims to attract sustainable investments. Scheduled for Friday, the company will issue bonds from the HEIMAR50 GB series. These bonds represent not just a financial instrument but also a commitment to environmentally responsible investment.
Details of the HEIMAR50 GB Bonds
The HEIMAR50 GB series showcases green, inflation-linked bonds that are secured through the company’s general security arrangement. What makes this offering distinctive is its maturity date, extending to 20 August 2050, and its repayment structure, which follows a 30-year annuity schedule. Investors can look forward to quarterly interest and principal payments every February, May, August, and November.
Interest Rates and Outstanding Amount
The bonds carry a nominal interest rate of 2.477%, presenting a competitive option for investors. Currently, the bonds have an outstanding nominal amount of ISK 14,420 million, reflecting the robust financial standing of Heimar hf. This offering enhances the company's portfolio and provides a secure channel for investors seeking to support green initiatives.
Bidding and Auction Process
The bond offering will utilize a Dutch auction format, which encourages competitive bidding. In this type of auction, all accepted bids will be allocated at the highest accepted yield, ensuring the best possible returns for investors. It’s essential to note that the company reserves the right to accept bids in full or in part, or even reject all bids if necessary, providing flexibility in the offering process.
Settlement and Trading
Once the auction concludes, settlement for the bonds is expected to take place on 24 June 2025. Following this, Heimar hf. will apply for the new bonds to be listed on the Main Market of Nasdaq Iceland hf. This step is crucial for providing liquidity and visibility to the bonds in the market.
Regulatory Exemptions and Future Documents
This bond offering is exempt from the need to publish a full prospectus, in accordance with European Regulation and domestic laws. Heimar hf. will provide essential documents, such as a base prospectus and final terms, which will be accessible on the company’s dedicated investor relations website. This transparency aligns with regulatory compliance and gives potential investors the information they need to make informed decisions.
Role of Íslandsbanki Securities
Managing this bond issuance is Íslandsbanki Securities, a trusted partner known for its expertise in the financial services sector. They will oversee the auction, sale of the bonds, and facilitate their smooth admission to trading on Nasdaq Iceland, ensuring a robust process for all parties involved.
Contact Information
For inquiries and detailed information regarding the bond offering, potential investors can reach out to Björn Eyþór Benediktsson, Chief Financial Officer, at eythorb@heimar.is. Engaging directly with leadership provides a personal touch to the investment process and allows for clarity on any questions about the offering.
Frequently Asked Questions
What is the purpose of the HEIMAR50 GB bond issued by Heimar hf.?
The HEIMAR50 GB bond is aimed at raising funds for sustainable investments while providing competitive interest rates for investors.
What is the interest rate for the HEIMAR50 GB bonds?
The bonds bear a nominal interest rate of 2.477%, making it an attractive option for environmentally conscious investors.
How will the bonds be repaid?
The HEIMAR50 GB bonds follow a 30-year annuity repayment schedule, with principal and interest payments occurring quarterly.
When will the bond auction take place?
The bond offering is scheduled for Friday, with the settlement process expected on 24 June 2025.
Who is managing the bond issuance?
Íslandsbanki Securities is responsible for managing the issuance and sale of these bonds, as well as their admission to trading on Nasdaq Iceland.
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