On 20 January Arion Bank will prepay $92,664,000 of notes in addition to accrued interest. The notes amounted to $747,481,000 when they were issued at the beginning of the year.
This is in addition to the payment made in May 2016 of $252,697,000 and December 2016 of $237,120,000. Following these payments $165,000,000 remain outstanding on these notes. The notes are held by Kaupthing and were issued as part of the arrangements for the liberalization of capital controls in Iceland.
The prepayment is in accordance with the terms and conditions of the notes, which state that Arion Bank shall make a prepayment in the event of any further issuance by the Bank, such as the one that took place on 10 January 2017 when the Bank issued €200 million in senior unsecured bonds (to be consolidated and form a single series with the existing €300,000,000 notes issued on 1 December 2016).
For further information please contact Haraldur Gudni Eidsson of Arion Bank's Communications division at haraldur.eidsson@arionbanki.is, or tel. +354 444 7108.