Landsbankinn Issues Senior Bonds Worth SEK 1.3 Billion

Author: Logan Wright Updated: 03-11-2025 12:46 PM

Landsbankinn Secures SEK 1.3 Billion in Bond Issuance

In a significant development, Landsbankinn hf. has successfully completed the issuance of floating rate senior non-preferred bonds, gathering a substantial total of SEK 1,300 million. This bond offering symbolizes the bank’s robust capital management strategy and commitment to strengthening its financial position.

Details of the Issuance

The bonds are structured with a four-year tenor and feature an attractive issuer call option that can be exercised after three years, noted as 4NC3 in financial terms. The pricing for these bonds was set at a spread of 150 basis points over the 3-month STIBOR, indicating a solid investment opportunity for stakeholders.

Strong Investor Demand

Investor interest in the bond issuance was impressive, with demand nearly doubling expectations. Over twenty investors from the Scandinavian region showed keen interest, highlighting the confidence in Landsbankinn’s financial health and future prospects. This robust demand underscores the bank’s standing in the competitive financial landscape.

Trading and Management

The bonds will be issued under the bank’s established European Medium Term Note (EMTN) programme, and they are scheduled to be admitted for trading on Euronext Dublin from 20 March 2025. This strategic move is anticipated to enhance liquidity and investor accessibility.

In terms of management, the offering was expertly facilitated by leading deal managers Nordea and Swedbank, both of whom bring extensive experience and expertise in the market.

Conclusion

Landsbankinn's successful bond issuance is a pivotal milestone that not only reflects the bank's financial strength but also the trust of the investment community. With the backdrop of strong demand, the bank's strategic initiatives continue to consolidate its position as a key player in the financial sector.

Frequently Asked Questions

What type of bonds did Landsbankinn issue?

Landsbankinn issued floating rate senior non-preferred bonds.

How much did Landsbankinn raise from the bond issuance?

The bank successfully raised SEK 1,300 million through this bond issuance.

Who managed the bond issuance?

The bond issuance was managed by Nordea and Swedbank.

When will the bonds be traded?

The bonds will be admitted to trading on Euronext Dublin starting on 20 March 2025.

What does the 4NC3 designation mean?

The 4NC3 designation indicates a four-year term with a call option available after three years.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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