Arion Bank completes bond offering

On Friday Arion Bank completed its first covered bond offering, issuing ISK 2.5 billion worth of bonds in the series Arion CBI 34. The offering was heavily oversubscribed, with bids received for approximately ISK 8.7 billion.

The series has been listed on the Luxembourg Stock Exchange and is expected to be admitted for trading on Nasdaq OMX Iceland on Tuesday 21 February.

The bonds bear 3.60% inflation-indexed interest and mature in 2034 although prepayment is permitted from 2017.

Höskuldur H. Ólafsson, CEO of Arion Bank:
“We are delighted that the Bank's first bond offering got such a positive reception from the market. The level of demand reflects the faith the market has in the Bank and the work done to build the business over the last few years. It is important that we broaden the Bank’s funding profile and this offering has given us a significant boost for the future.”