REYKJAVIK, Iceland, July 5, 2006 (PRIMEZONE) -- Banc of America Securities Limited (Coordinator and Bookrunner), BayernLB (Bookrunner), Deutsche Bank Luxembourg S.A., Lloyds TSB Bank plc (Bookrunner and Agent) and The Royal Bank of Scotland plc (Bookrunner) as Mandated Lead Arrangers are delighted to announce that they have been mandated by Landsbanki Islands hf, to arrange a EUR300,000,000 3- year Tranche A and Tranche B syndicated credit facility on their behalf. The senior stage of the syndication, which was launched to close relationship banks of Landsbanki on 14th June 2006, was very successful, with the following ten banks committing as Arrangers: Citigroup, Credit Suisse, Dresdner Bank, DZ Bank, Fortis Bank, HSBC, ING Bank, JP Morgan, SMBC and Societe Generale. This has resulted in oversubscribing the facility to EUR 500,000,000 prior to general syndication, which was launched on 28th June 2006. A bank meeting was held on Tuesday, July 4th in London.
Details of the facility are as follows:
Borrower: Landsbanki Islands hf ("Landsbanki")
Type of Facility: Syndicated Credit Facility (the "Facility")
Facility Amount: EUR 300,000,000 (Tranche A: EUR 190,000,000 and
Tranche B: EUR 110,000,000)
Final Maturity: 3- years for Tranche A and Tranche B
Purpose: Tranche A: General funding purposes. Tranche B: Back-up for
their commercial paper programme (including the refinancing of their
existing EUR110,000,000 backstop facility) and/or for general
corporate purposes
Margin: 32.5 basis points per annum
Commitment Fee: 14.0 basis points per annum
About Landsbanki
With a network of 42 branches and sub-branches throughout Iceland, Landsbanki is a leading Icelandic financial institution with total assets of ISK 1,769 billion at the end of March 2006. Landsbanki has the leading market share in all major segments of the Icelandic financial market, including deposits and domestic lending above 30%. The Bank has positioned itself as Iceland's primary source of general and specialised financial services to individuals, corporate entities and institutions.
Building on its strong foundation in Iceland, Landsbanki has successfully extended its services into new markets. Landsbanki and subsidiaries have offices operating in all major financial centres of Europe, as well as North American representation in New York and Halifax. Through its extensive distribution network, Landsbanki has a strong platform to deliver targeted financial services based on local expertise. Landsbanki continues to expand its international business activities, through integration and consolidation of the Bank's operational platforms and service offering.
Long Term Ratings of Landsbanki Moody's A2 (March 05) Fitch A (Nov. 04)
For any questions please contact on behalf of the Mandated Lead Arrangers: