Landsbankinn's Recent Covered Bond Auction: Key Insights

Author: Dylan Bailey Updated: 02-13-2025 10:46 AM

Landsbankinn hf. Concludes Successful Covered Bond Auction

Today, Landsbankinn successfully wrapped up a notable covered bond auction, marking a significant event in its financial activities.

Overview of the Auction Bids

The auction attracted a total of five bids within the series LBANK CB 29, amounting to ISK 1,120 million. The yields for this series ranged from 7.31% to 7.40%. Ultimately, bids totaling ISK 920 million were accepted at a yield of 7.38%. Following this issuance, the total amount in the series will reach ISK 16,540 million.

Insights on LBANK CBI 30

In the series LBANK CBI 30, Landsbankinn received 18 bids totaling ISK 5,780 million. The yield for this series sat between 3.67% and 3.72%. After careful consideration, bids of ISK 4,780 million were accepted at a yield of 3.70%. As a result of this event, the total amount issued in this series will increase to ISK 50,900 million.

Settlement and Ratings

Importantly, the settlement date for these transactions is set for 20 February 2025. The covered bonds issued by Landsbankinn have gained considerable recognition, currently holding an A+ rating with a stable outlook from S&P Global Ratings.

Market Makers and Regulatory Compliance

Several banks play key roles in maintaining market liquidity for these covered bonds. Arion banki, Islandsbanki, and Kvika serve as market makers, ensuring a vibrant trading environment for these financial instruments. It's worth noting that these bonds are issued following a license from the Financial Supervisory Authority (FME) in accordance with Icelandic regulations.

Understanding the Regulatory Framework

The issuance of these covered bonds adheres to standards outlined in act no. 11/2008, as well as FME’s rules no. 190/2023. This compliance highlights Landsbankinn’s commitment to maintaining high standards in its financial operations.

Accessing More Information

For those interested in further details about the bonds and the specific cover pool involved, additional information is available directly on Landsbankinn's website.

Frequently Asked Questions

What were the key statistics from the bond auction?

The auction received bids for LBANK CB 29 and LBANK CBI 30, totaling ISK 1,120 million and ISK 5,780 million, respectively.

What is the significance of the bond ratings?

The A+ rating with a stable outlook from S&P Global Ratings indicates strong financial stability and creditworthiness.

Who are the market makers for these bonds?

Market makers include Arion banki, Islandsbanki, and Kvika, which help facilitate trading and liquidity.

What is the settlement date for these bonds?

The settlement date is set for 20 February 2025.

Where can I find more information about Landsbankinn's bonds?

Additional details can be accessed on Landsbankinn's official website, providing insights about the bonds and associated cover pools.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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