Íslandsbanki has today issued a 10NC5 SEK 500 million Tier 2 bond at a spread of 3 month STIBOR + 390. The bond is expected to be rated BBB- by S&P Global Ratings which is investment grade. This is the third subordinated issue from Íslandsbanki, with the Bank having previously issued its first SEK 750 million Tier 2 bond in November 2017 and its second SEK 500 million Tier 2 bond in August 2018.

Through this transaction, Íslandsbanki has reached its Tier 2 target which is an important milestone in optimising the Bank's long-term capital composition. As in previous Tier 2 transactions, Nordic investors were predominant in the order book, which underlines Íslandsbanki’s strong position in the Nordic financial markets. 

The bond will be issued under Íslandsbanki’s USD 2,500m Global Medium Term Note (GMTN) Programme which enables Íslandsbanki to issue bonds in a broad range of currencies at fixed or floating interest rates. The GMTN Base Prospectus and its supplements are available at https://www.islandsbanki.is/en/landing/about/investor-relations.

The bond is expected to be listed on the Irish Stock Exchange on 26 June 2019.

Joint bookrunners on the transaction were Danske Bank, Nordea and Swedbank.

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About Íslandsbanki
A leader in financial services in Iceland, Íslandsbanki is a universal bank with total assets of ISK 1,205 bn and a 25% - 50% market share across all domestic business segments. Building on over 140 years of servicing key industries, Íslandsbanki has developed specific expertise in tourism, seafood and energy related industries. Driven by the vision to be #1 for service, Íslandsbanki’s relationship banking business model is propelled by three business divisions that manage and build relationships with the Bank’ s customers. Íslandsbanki has developed a wide range of online services such as the Íslandsbanki and Kass apps, enabling customers to do their banking whenever and wherever. At the same time, the Bank continues to operate the most efficient branch network in Iceland through its strategically located 14 branches. For the sixth consecutive year, Íslandsbanki led the Icelandic Customer Satisfactory Index for banks in 2018 and was also named Best Bank of Iceland in 2018 by Euromoney. Íslandsbanki has a BBB+/A-2 rating from S&P Global. https://www.islandsbanki.is/en

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