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    Arion Bank and Kaupthing reach funding agreement
    12.01.2016

    Arion Bank and Kaupthing reach funding agreement

    Arion Bank and Kaupthing reach funding agreement - mynd

    Arion Bank hf. has reached an agreement with Kaupthing ehf. under which Arion Bank will issue a bond in the amount of $747,481,000 (ISK 97 billion). The bond is being issued under Arion Bank’s EMTN programme. It is a 7-year instrument and is callable on interest payment dates during the first two years. The bond bears floating LIBOR plus 2.6% for the first two years and will be repriced then at market terms.

    The bond will offset loans in foreign currency taken by Arion Bank from the Central Bank of Iceland, which are now owned by Kaupthing, and Kaupthing deposits in foreign currency at Arion Bank.

    The bond issue forms part of the arrangements for the liberalization of capital controls in respect of Kaupthing, first announced by the Ministry of Finance and Economic Affairs on 8 June 2015.