Landsbankinn hf. Concludes Successful Covered Bond Auction
In a notable financial event, Landsbankinn hf. completed an auction that showcased their recently offered covered bonds. This auction brought forth several series, drawing considerable interest from investors.
Overview of Bids Received
The auction yielded an impressive response, with a total of 8 bids amounting to ISK 3,220 million for the LBANK CB 27 series, offering yields that ranged between 7.85% and 7.91%. Ultimately, the bank accepted bids totaling ISK 3,220 million at a yield of 7.91%. With this tap issuance, the overall amount for the LBANK CB 27 series has now reached ISK 66,760 million.
Performance of Other Series
For the LBANK CB 29 series, Landsbankinn received 12 bids aggregating ISK 4,220 million, with yield rates falling between 7.65% and 7.74%. In this case, the bank accepted ISK 3,680 million at a yield of 7.69%, which elevates the total issuance for this series to ISK 43,840 million.
Additionally, the LBANK CBI 31 series attracted 9 bids for ISK 3,560 million, with yields between 3.90% and 3.95%. The accepted bids amounted to ISK 2,160 million at a yield of 3.93%, resulting in a total issuance of ISK 17,880 million for this series.
Market Making and Ratings
Three financial institutions — Arion banki, Islandsbanki, and Kvika — serve as market makers for Landsbankinn’s covered bonds. Notably, these bonds hold an A+ rating with a stable outlook as assessed by S&P Global Ratings, showcasing Landsbankinn's robust standing in the market.
Regulatory Compliance
These covered bonds are issued under a license granted by the Financial Supervisory Authority (FME), in accordance with the applicable regulatory frameworks. Investors and interested parties can find additional information regarding the bonds along with details about the cover pool directly on Landsbankinn's website.
Looking Ahead
The expected settlement date for these transactions is indicative of Landsbankinn's careful planning and operational effectiveness. As the bank continues to navigate the market landscape, their strategies reflect an adaptive approach to financial opportunities.
Frequently Asked Questions
What types of bonds did Landsbankinn offer in the auction?
Landsbankinn offered bonds from the LBANK CB 27, LBANK CB 29, and LBANK CBI 31 series during the auction.
What were the yield rates for the LBANK CB 27 series?
The yield rates for the LBANK CB 27 series ranged from 7.85% to 7.91%, with the accepted bid at 7.91%.
How much total issuance did the LBANK CBI 31 series receive?
The total issuance for the LBANK CBI 31 series amounted to ISK 17,880 million following the accepted bids.
Who are the market makers for Landsbankinn’s covered bonds?
Arion banki, Islandsbanki, and Kvika are the market makers for covered bonds issued by Landsbankinn.
What rating do the covered bonds hold?
The covered bonds issued by Landsbankinn are rated A+ with a stable outlook by S&P Global Ratings.
