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Landsbankinn hf. Launches Landmark Bond Issuance in 2024

Landsbankinn hf. Launches Landmark Bond Issuance in 2024

Landsbankinn hf. Achieves a Milestone with Bond Issuance

Today marks an important moment for Landsbankinn hf. as the bank has successfully completed the sale of senior non-preferred bonds. This groundbreaking issuance totals SEK 1,000 million and NOK 250 million, designed to offer flexibility with a four-year term and an issuer call option available after three years. The bonds are priced at a spread of 180bps over three-month STIBOR and 183bps over three-month NIBOR, featuring a distinctive 4NC3 structure.

First of Its Kind from an Icelandic Bank

This bond issuance is notable as it represents the first senior non-preferred issuance from any bank in Iceland, highlighting the innovative financial strategies that Landsbankinn is implementing in today's market. With an expected issue rating of BBB from S&P, this initiative underscores the bank's strong financial position and strategic vision.

High Demand from Investors

Investor interest in these bonds was remarkably strong, surpassing two times the initial offering. Over twenty investors, primarily from Scandinavia, participated in the issuance. This substantial demand reflects a high level of confidence in Landsbankinn and the value it contributes to the capital markets.

Details on Trading and Management

The bonds will be issued under the bank’s EMTN programme, which facilitates efficient issuance in the international debt markets. Trading for these securities will commence on Euronext Dublin starting September 13, 2024, enhancing visibility and liquidity for investors. DNB and Nordea served as the deal managers for this issuance, reinforcing their positions as key players in the Nordic financial landscape.

Frequently Asked Questions

What is the significance of this bond issuance for Landsbankinn?

This issuance is significant as it marks the first senior non-preferred bonds from an Icelandic bank, indicating a new trend in Icelandic banking strategies.

What are the terms of the bonds issued by Landsbankinn?

The bonds have a four-year tenor with an issuer call option after three years, pricing at 180bps over STIBOR and 183bps over NIBOR.

Who managed the bond issuance for Landsbankinn?

The bond issuance was managed by DNB and Nordea, two prominent financial institutions in the Nordic region.

When will the bonds begin trading?

The bonds are scheduled to start trading on Euronext Dublin on September 13, 2024.

What rating is expected for the bonds from S&P?

The expected issue rating from S&P for the bonds is BBB, reflecting Landsbankinn's financial stability.

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