Today, Landsbankinn concluded a sale of European Covered Bonds (Premium) in euros. The bonds are in the amount of EUR 300 million, with a 5-year tenor and have a fixed coupon of 4.25%. The bonds were sold at terms equivalent to 90 basis point spread over mid-swap market rate.
Hreiðar Bjarnason, CFO, says: “Sale of covered bonds in euros is an important milestone for Landsbankinn’s funding in foreign currency and reflects the diversity in the Bank’s funding sources. This is the Bank’s inaugural covered bond auction in foreign currency and the first European Covered Bond (Premium) from an Icelandic bank.”
The issuance will be made under the Bank's covered bond programme and the credit rating of the bonds will be A by S&P Global Ratings. The bonds are expected to be admitted to trading on Euronext Dublin as of 23 March 2023.
Managers were Barclays, Natixis and UBS Investment Bank.
