Landsbankinn hf.: Green euro-denominated bonds

Today, Landsbankinn concluded the sale of a new green bond series in the amount of EUR 300 million. The bonds bear 0.375% fixed rates and were sold at terms equivalent to an 87 basis points spread above mid-swap market rates. Subscriptions came to just under one billion euro from more than 80 investors.

These are 4.25Y bonds, maturing in May 2025. The bonds were sold to investors in the UK, continental Europe and Scandinavia. The issuance reached a broader investor group than before, including investors in alternatives who focus on sustainability.

The bonds will be issued under the Bank’s EMTN programme with reference to its sustainable finance framework, which has been reviewed by Sustainalytics. The bonds will be admitted to trading on Euronext Dublin as of 25 February 2021.

Managers were ABN AMRO, BofA Securities, Citi and Deutsche Bank.

Lilja Björk Einarsdóttir, CEO of Landsbankinn:

“We are immensely pleased with the reception of the Bank’s first green bond issuance. The Sustainable finance framework and the green bond issuance gives us access to a broader investor base and strengthen Landsbankinn’s position as a lender to the Icelandic export sector.

There is a clear opportunity for Icelandic companies and banks to lead the way in sustainability and it is an important step for Landsbankinn to be able to offer green funding to companies that operate sustainably. Our sustainability journey now spans a few years and this milestone is very important for the Bank. We are issuing on the back of a strong 2020 result and this is a great way to start the year for Landsbankinn, an ever-smarter bank.”