Íslandsbanki has tapped into two outstanding issuances of covered bonds that
were listed on NASDAQ OMX Iceland in March 2012. The two tap issuances, which
are both CPI-linked, are on the one hand a 7 year issuance, ISLA CBI 19, for an
amount of ISK 635,000,000 at a real yield of 2.90%, and on the other hand a 12
year issuance, ISLA CBI 24, for an amount of ISK 850,000,000 at a real yield of
3.48%.
The total amount issued in ISLA CBI 19 and ISLA CBI 24 has now reached ISK
2,465,000,000 and ISK 2,350,000,000 respectively, following these latest
issuances. In total, Íslandsbanki has now issued covered bonds amounting to ISK
8,815,000,000 since its inaugural issuance in December 2011.
Sold to a broad group of institutional investors, total appetite for the tap
issuances amounted to ISK 2,185,000,000, but 68% of offers were accepted, or for
the amount of ISK 1,485,000,000.
Trading is expected to commence on 10 May 2012 on the Nasdaq OMX Iceland. Market
making for all of Íslandsbanki's covered bond issues is in the hands of MP
banki.
The bonds are issued under Act 11/ 2008 on Covered Bonds which obliges the
issuer to fulfil strict requirements, whereby the underlying cover pool must
withstand a weekly stress test with regards to interest rates and exchange
rates. The issue is regulated by the Icelandic Financial Supervisory Authority
which additionally appoints an independent inspector to monitor the issue.
Special cover pool reports on the covered bond issuances are published quarterly
and can be found on Íslandsbanki's web.
For further information:
* Investor Relations - Tinna Molphy, tinna.molphy@islandsbanki.is and tel:
+354 440 3187.
* Media Relations - Guðný Helga Herbertsdóttir,
gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 440 3678 / mob:
+354 844 3678.
[HUG#1608872]