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


The bank is primarily financed by deposits, but in recent years there has been an increased emphasis on diversity in the bank's financing methods.

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 has a covered bond programme 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.

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.

Global Medium Term Notes - GMTN

Íslandsbanki has an USD 2.5bn Global Medium Term Note Programme (GMTN) in place. The Programme is registered at the Irish Stock Exchange and is rated by S&P, which have assigned the programme the same rating as the Bank.

Sustainable Financing Framework

Íslandsbanki has defined a Framework for sustainable loans and investments in its portfolio. It consists of green, blue and red categories for social development.

Sustainalytics has given its positive second party opinion on the Framework, which is based on the ICMA´s Green, Social and Sustainable Principles.

They consist of the following four pillars:

  • Use of proceeds
  • Process for project evaluation and selection
  • Management of Proceeds
  • Reporting

Read more about the Sustainable Financing Framework