Íslandsbanki hf. has today concluded an offering of two senior preferred bonds. Total demand amounted to ISK 9,080m.
The new series ISB GBF 27 1122 and ISB GB 27 1122 were offered to investors.
ISB GBF 27 1122 was sold for an amount of ISK 3,820m. ISB GBF 27 1122 is a 5-year floating rate bond series maturing on 22 November 2027. This is a green equal payment floating rate bond. The bond will be issued at a spread of 125bp over 1-month REIBOR.
ISB GB 27 1122 was sold for an amount of ISK 5,260m. ISB GB 27 1122 is a 5-year fixed rate bond series. This is a green fixed rate bond with an annual coupon of 7.70% and repayment of nominal on 22 November 2027.
In connection with the auction holders of the series ISB 24 1125 and ISB GB 25 1126 were offered to sell their bonds in the series against bonds bought in the above-mentioned auction. The clean price of the series ISB 24 1125 was predefined at 100.00. The clean price of the series ISB GB 25 1126 was predefined at 89.9746.
The Bank buys back a nominal of ISK 2,860m of ISB 24 1125 and ISK 5,460m of ISB GB 25 1126, or a total market value of ISK 6,300m.
Expected settlement date is 22 November 2022.
The bonds will be issued under the Bank’s EMTN programme and are expected to be admitted to trading on Nasdaq Iceland on 22 November 2022.
An amount equal to the net proceeds of the issue will be used to finance or refinance, in whole or in part, the Issuer's investments in Eligible Assets (being Green Projects), as further described in the Issuer’s Sustainable Financing Framework available on the Issuer’s website: https://www.islandsbanki.is/en/product/about/funding.