Covered Bonds
- Íslandsbanki estimates that the total issuance of covered bonds will be approximately ISK 25-30 billion in 2019.
- Maturing in 2019 are ISLA CB 19 and ISLA CBI 19 a total nominal value of ISK 18.4 billion. The bank will continue to look into refinancing them through tenders in new bonds.
- Total nominal amount of outstanding covered bonds issued by Íslandsbanki at year end 2018 was approximately 130 billion.
- The Bank aims to hold monthly auctions in 2019 and the scheduled dates can be found in a table at the end of this document. The arrangement of individual auctions will be announced in Nasdaq Iceland.
- Arion Bank, Kvika and Landsbankinn are the market makers for Íslandsbanki´s covered bonds.
- The market makers will submit bids and asks for the bonds every day. The minimum amount at nominal value for benchmark series shall be ISK 80 million and the minimum amount for other series shall be ISK 20 million. In the case of benchmark series, if the outstanding nominal value is less than ISK 10 billion, the total amount shall be ISK 60 million. If the series is more than ISK 10 billion, the total amount shall be ISK 80 million.
- The bond series ISLA CB 23, ISLA CBI 26 and ISLA CBI 30 are benchmark series.
- It is possible that the maximum size of current covered bond series will be increased as well as new series will be added in 2019.
Commercial Paper
- Íslandsbanki intends to hold monthly offerings of commercial paper auctions in 2019.
- The total amount of issued commercial paper is undecided and conditional upon market conditions.
- The arrangement of individual auctions will be announced in Nasdaq Iceland.
Foreign bonds and other funding
- Íslandsbanki intends to issue foreign currency bonds on a regular basis through its GMTN programme as well as conduct buybacks of outstanding bonds in a continuing effort to maintain a strong balance sheet position while efficiently applying surplus liquidity.
- The form of international funding will depend on market conditions and the general interest of investors and may be in the form of senior as well as subordinated bonds.
- Íslandsbanki plans to diversify the Bank´s funding and will examine other funding options to add to its funding channels if it is considered suitable for the Bank.
Issuance Schedule for Covered Bonds
Estimated issuance dates for covered bonds are shown in the table below.
Covered Bonds Issuance Week
- Week 5
- Week 9
- Week 14
- Week 20
- Week 24
- Week 29
- Week 33
- Week 37
- Week 41
- Week 46
- Week 50
Íslandsbanki reserves the right to change the above plan including abandoning, increasing or amending the issuance dates, changing the issuance amount and make other changes as needed, without notice.
For further information on Íslandsbanki´s funding please see the banks website at: https://www.islandsbanki.is/english/investor-relations/funding/
For further information
Investor Relations - Gunnar S. Magnússon, ir@islandsbanki.is and tel: +354 440 4665.