Landsbankinn hf. Launches New Subordinated Bonds Auction
Landsbankinn hf. is set to introduce a new series of subordinated bonds, known as LBANK T2I 36, in an auction event. This auction, scheduled for a Thursday, offers an exciting opportunity for investors seeking to enhance their portfolios.
The bonds being offered are inflation-linked and designed to contribute towards Tier 2 capital. They feature fixed interest rates, which will be paid annually as per the terms of issuance. Maturity of these bonds is anticipated in June 2036, although there's a call option that allows for early redemption in June 2031 or on each subsequent interest payment date thereafter, commonly referred to as 11.5NC6.5.
A Dutch Auction Format
This auction will employ a Dutch auction format, wherein all bonds will be priced identically, determined by the highest acceptable yield during the auction process. This approach promotes efficiency and is particularly attractive for both the issuer and investors alike.
Landsbankinn maintains the discretion to accept any bid, in whole or in part, and also reserves the right to reject bids. This flexibility allows for a more adaptive auction process that can respond to market conditions. The expected settlement date for the auction is projected to be just a few days after, specifically on 19 December 2024.
Investment Exclusivity
It is important to note that this offering is tailored specifically and is not intended for retail investors, emphasizing the institutional nature of the bonds. This focus might appeal strongly to investors looking to diversify their holdings within a structured capital framework.
How to Get Involved
Landsbankinn Capital Markets will take charge of managing the auction, guiding potential investors through the process. For additional inquiries and further information regarding this offering, interested parties can reach out via phone at +354 410 7330. Alternatively, they may email directly to verdbrefamidlun@landsbankinn.is.
Frequently Asked Questions
What are the key features of the LBANK T2I 36 bonds?
The LBANK T2I 36 bonds are inflation-linked, have a fixed interest rate, mature in June 2036, and include a call option starting in June 2031.
Who is managing the auction for the subordinated bonds?
Landsbankinn Capital Markets is managing the auction and guiding investors through the process.
Is this offering available to retail investors?
No, the offering is specifically designed for institutional investors and not intended for retail participation.
What is the expected settlement date for the auction?
The expected settlement date for the auction is 19 December 2024.
How can I contact Landsbankinn for more information?
Investors can call +354 410 7330 or email verdbrefamidlun@landsbankinn.is for inquiries.
