The Bank is mainly deposit funded but it is an active bond issuer in domestic and international markets.


Íslandsbanki is one of the largest issuer of covered bonds in the domestic market. Domestically, the Bank is also a frequent issuer of unsecured listed securities.

The Bank’s Euro Medium Term Note (“EMTN”) Programme is the Bank's platform for funding in international markets. The inaugural bond issue under the EMTN programme was in December 2013.

Covered Bonds

Íslandsbanki has a covered bond programme in place. The bonds are issued under Act no. 11/2008 on Covered Bonds. The issue is regulated by the Icelandic Financial Supervisory Authority and an independent inspector monitors the issues.

Domestic Bond Programme

Íslandsbanki has published a base prospectus for a domestic bond programme. The Bank is able to issue a wide range of bonds under the prospectus.

Euro Medium Term Notes – EMTN

Íslandsbanki has a USD 2.5bn Euro Medium Term Note programme (EMTN) in place. The programme is registered at the Irish Stock Exchange.

Additional Tier 1

Sustainable Funding Framework

Íslandsbanki’s most recent Sustainable Funding Framework (the framework) was published in January 2024. The framework has been simplified and aims to reflect the latest market standards. The framework is in alignment with the ICMA Green, Social and Sustainable Bond Principals the structure of the framework follows ICMA’s four key pillars – use of proceeds, process for project evaluation and selection, management of proceeds, and reporting.

Sustainalytics, a leading international Second Party Opinion provider, has reviewed the framework and provided the bank with a conformation that the framework is according to market practice. Sustainability experts from Swedbank provided advice on the development of the framework.

Please find below further information in relation to Íslandsbanki's sustainable funding.

Read more about the Sustainable Funding Framework