Íslandsbanki hf. has tapped into outstanding issues of non-indexed covered bonds
listed on Nasdaq Iceland. ISLA CB 16 was tapped for an amount of ISK
350,000,000 at a nominal yield of 6.25% and ISLA CB 19 was tapped for an amount
of ISK 860,000,000 at a nominal yield of 6.95%.
Following these latest issues, the total amount issued in ISLA CB 16 has reached
ISK 2.82bn and ISLA CB 19 has reached ISK 1.40bn. In total, Íslandsbanki has now
issued covered bonds amounting to ISK 30.68bn since its inaugural issue in
December 2011.
Sold to a broad group of investors, total appetite for the tap issue amounted to
ISK 2.06bn, of which 59% of the offers were accepted. Trading is expected to
commence on 24 October 2014 on the Nasdaq Iceland. Market making for all of
Íslandsbanki's covered bond issues is in the hands of MP bank.
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
issuances are regulated by the Icelandic Financial Supervisory Authority which
additionally appoints an independent inspector to monitor the issuances. 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 - Guðbjörg Birna Björnsdóttir,
gudbjorg.bjornsdottir@islandsbanki.is and tel: +354 440 4752.
* Media Relations - Guðný Helga Herbertsdóttir,
gudny.helga.herbertsdottir@islandsbanki.is and tel: +354 844 3678.
[HUG#1863903]