On Tuesday 20 June, Arion Bank issued new senior unsecured bonds for a total of €300 million. The bonds are 3-year instruments. Orders were received from 80 investors with total demand in excess of €750 million, meaning the issue was more than two times oversubscribed.
The bonds have a fixed coupon of 0.75% and were sold at rates corresponding to a 0.88% margin over interbank rates. Arion Bank mandated Goldman Sachs, JPMorgan, Nomura and UBS for the transaction. As before, part of the issue will be used to pay down existing loans.
Höskuldur H. Ólafsson, CEO of Arion Bank:
“Arion Bank is now a regular issuer on the international bond markets and the increased number of orders show that Arion Bank is becoming well known among investors. It’s very pleasing to see that Arion Bank’s terms on international credit markets are steadily improving. Improved terms reflect a greater level of interest and confidence in the Bank. This is of great importance to both us and our customers and it enables us to compete more effectively.”
For further information please contact Haraldur Gudni Eidsson, head of Arion Bank's Communications division, at haraldur.eidsson@arionbanki.is, or tel. +354 444 7108.