Funding

The Bank is predominantly funded by deposits but further diversification of the Bank´s funding base has been an important theme in recent years.

Funding

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

Covered Bonds

Íslandsbanki was the first bank to list securities on Nasdaq Iceland after the financial crisis in 2008. The covered bond issuances represent an important source of funding for mortgage lending in the domestic market. Under the ISK 170bn covered bond programme that’s in place. The bonds are issued under Act 11/ 2008 on Covered Bonds. The issue is regulated by the Icelandic Financial Supervisory Authority which additionally appoints an independent inspector to monitor the issues.

Prospectus

The Base Prospectus was approved by NASDAQ OMX Iceland on behalf of the Financial Supervisory Authority – Iceland. Please find the base prospectus below as well as its supplements.

Upcoming auctions

Íslandsbanki estimates that the total issuance of covered bonds will be approximately ISK 25-30 billion in 2019. The Bank aims to hold monthly auctions and the arrangement of individual auctions will be announced in Nasdaq.

It is possible that the maximum size of current covered bond series will be increased as well as new series will be added.

Estimated issuance 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.

Unsecured Bonds (Commercial paper)

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.

Final Terms

Base Prospectus

Upcoming auctions

Íslandsbanki intends to hold monthly offerings of commercial paper auctions. 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.

Global Medium Term Notes - GMTN

In June 2013, Íslandsbanki signed a Global Medium Term Note („GMTN“) Programme. The USD 2,500,000,000 Programme – arranged by BofA Merrill Lynch – enables Íslandsbanki to issue fixed and floating rate notes in a broad range of currencies.

The programme is rated by S&P, which have assigned the programme the same rating as the Bank. Please note that ratings are assigned to the programme and not to the notes issued under the programme unless otherwise stated.  The Dealer panel is constituted as follows:

  • Barclays Bank Plc
  • Citigroup Global Markets Limited
  • Deutsche Bank AG, London Branch
  • Goldman Sachs International
  • J.P.Morgan Securities plc
  • Merrill Lynch International
  • Morgan Stanley & Co. International plc.
  • Nomura International plc
  • UBS Limited
Íslandsbanki GMTN Base Prospectus