Municipality Credit Iceland (MCI) finalised a private placement of new green bonds class LSS040440 GB on 19 February 2020. Landsbankinn Capital Markets coordinated the sale.
LSS040440 GB is an indexed 20Y series, with equal instalments and interest payments at six-month intervals and 1.50% fixed annual rates.
The placement had a Dutch auction structure, whereby all accepted bids are offered investors at the highest price for each class.
A total of 32 bids were submitted for LSS040440 GB in the nominal value of ISK 3,990 million at a yield of 1.30% - 1.69%. Bids totalling ISK 1,100 million were accepted at a yield of 1.35%. The nominal value of the class will be ISK 1,100 million following issuance.
The proceeds from the bond offering will go towards financing environmentally-friendly municipality undertakings that minimise climate change.
Payment and settlement is scheduled for 26 February 2020. The issuer will apply for admittance of the bonds for trading on the Nasdaq Iceland Sustainable Bond market the same day.
Umræðan: Green bond financing for municipalities (icelandic)
