Íslandsbanki hf. will be offering two new senior preferred bonds in a closed auction on Tuesday 15 November 2022.
The new series ISB GBF 27 1122 and ISB GB 27 1122 will be offered.
ISB 27 GBF 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 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.
The bonds will be offered for sale at the predefined price of par in the auction.
In connection with the auction holders of the series ISB 24 1125 and ISB GB 25 1126 can sell their bonds in the series against bonds bought in the above-mentioned auction. The clean price of the series ISB 24 1125 is predefined at 100.00. The clean price of the series ISB GB 25 1126 is predefined at 89.9746 (yield 7.33%).
The Bank reserves the right to accept or reject offers in part or in whole.
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.
The auction will be managed by Íslandsbanki’s Fixed Income Sales. Offers shall be submitted by e-mail to email@example.com before 16:00 p.m. on 15 November 2022.