Íslandsbanki hf. has today launched its inaugural issue of Additional Tier 1 notes as part of its plan to optimise its capital structure.
The issue of SEK 750 million perpetual notes with a 5-year call was placed with investors across Scandinavia and continental Europe and was considerably oversubscribed.
The transaction pays a coupon of 3-month STIBOR +475 basis points for the life of the notes and features a temporary write-down structure, a 5.125% CET 1 trigger.
The Notes are expected to be rated BB- by Standard & Poors. The issue will be listed on GEM Euronext Dublin on 28 September 2021.
Sole Structuring Advisor is UBS Investment Bank. Joint Lead Managers are Danske Bank A/S, Skandinaviska Enskilda Banken AB (Publ) and UBS Investment Bank.
Birna Einarsdóttir, CEO of Íslandbanki:
“I am greatly encouraged by the warm reception with which this highly significant issue has met. The issue marks an important step in the Bank’s ambition to drive efficiencies in its capital formation whilst maintaining strong capitalisation. The high demand reflects investors’ strong confidence in Íslandsbanki and the Icelandic economy. We have worked hard, in recent years, to build a following with investors across Europe, not least in the Nordic countries and we place a high value on those relationships. All of the Bank’s subordinated issuance has been in Swedish kronas and this Additional Tier 1 issue is the next chapter in the story.”
For further information:
Investor Relations – Margrét Lilja Hrafnkelsdottir, firstname.lastname@example.org and tel: +354 844 4033.
Public Relations – Björn Berg Gunnarsson, email@example.com and tel: +354 844 4869
Íslandsbanki IR releases
If you wish to receive Íslandsbanki press releases by e-mail please register at: https://www.islandsbanki.is/en/article/email_list_ir
With a history that dates from 1875, Íslandsbanki is an Icelandic universal bank with a strong customer focus. The Bank believes in moving Iceland forward by empowering its customers to succeed – reflecting a commitment to run a solid business that is a force for good in society. Driven by the ambition to be #1 for service, Íslandsbanki’s banking model is led by three business divisions that build and manage relationships with its customers. Íslandsbanki maintains a strong market share with the most efficient branch network in the country, supporting at the same time its customers’ move to more digital services. The Bank operates in a highly attractive market and, with its technically strong foundations and robust balance sheet, is well positioned for the opportunities that lie ahead. Íslandsbanki has a BBB/A-2 rating from S&P Global Ratings. The Bank’s shares are listed on Nasdaq Iceland Main Market.
This press release may contain “forward-looking statements,” involving uncertainty and risks that could cause actual results to differ materially from results expressed or implied by the statements. Íslandsbanki hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. It is the investor’s responsibility to not place undue reliance on these forward-looking statements which only reflect the date of this press release. Forward-looking statements should not be considered as guarantees or predictions of future events and all forward-looking statements are qualified in their entirety by this cautionary statement.