Arion Bank issues inaugural €300 million Green Bond

On Wednesday 7 July, Arion Bank issued a new 4 year senior unsecured green bond for a total of €300 million. This was the first green bond from Arion Bank. The bond issue was oversubscribed, orders were received from over 70 investors with total demand at peak of over €600 million.
The green bonds were sold at rates corresponding to a 0.80% margin over interbank rates. Arion Bank mandated Deutsche Bank AG, Barclays Bank Ireland PLC, ABN AMRO Bank N.V. and Citigroup Global Markets Europe for the transaction.

Arion Bank recently published a Green Financing Framework which applies to the Bank’s funding and lending activities. The Framework sets out clearly and transparently the conditions which the Bank’s loans need to meet in order to be considered environmentally friendly. The Framework also specifies the Bank’s governance structure for the selection of green assets.

Benedikt Gíslason CEO:
"We are very pleased with the reception of the Bank's first green bond issue from international investors. The pricing of the bond is the tightest that the Bank has received in recent years. Green bond issuance supports the Bank's environmental and climate policy, in addition to expanding the Bank's investor base, thus improving funding access on favorable terms, which will help the Bank offer better terms to its customers when it comes to lending that promotes sustainable and green projects."