Ár­borg issu­es initial sustaina­bility bond

In June, the municipality of Árborg issued the first sustainability bond in Iceland, where the proceeds are intended to finance green or socially beneficial projects.
25 June 2021

The issuance is based on Árborg’s sustainable finance framework, prepared in collaboration with Landsbankinn. The Bank also coordinated the issuance and sale of the bonds, and their admittance for trading on Nasdaq Iceland 21 June.

Hrefna Ösp Sigfinnsdóttir, Managing Director of Asset Management & Capital Markets at Landsbankinn: “Our collaboration with Árborg municipality was very successful. Favourable terms were achieved and the considerable over-demand is an indication of high investor interest in sustainable investment objectives. This issuance is seminal - the first issuance of a sustainability bond in Iceland. This is also the first time a bank coordinates the process from start to finish, from acting as advisor in the development of a sustainable finance framework, to the sale of the bonds and their admittance to trading.”

Sustainability bonds differ from green bonds in that the proceeds from their issuance finance projects with social aims. The bonds are issued to finance green and/or social projects that meet the requirements of Árborg’s sustainable finance framework, which in turn reflects the municipality’s strategy for sustainable and social development. The framework conforms with the guidelines of the International Capital Market Association (ICMA) and a second-party opinion was provided by Sustainalytics, a leading international provider of such certification.

The bonds, in the amount of ISK 1.4 billion, were sold in a closed offer with a 1.35% premium. Subscriptions came to a total of over ISK 3.1 billion.

You may also be interested in
New temp image
29 July 2022

Beware of fraud – do not approve payments and log-ins without due consideration

We would like to issue a warning about fraudulent behaviour that has taken place under name of Landsbankinn, and remind you that a transfer of funds should never be approved unless you really intend to transfer funds.
29 July 2022

Allocations from the Pride Parade Fund of Reykjavík Pride and Landsbankinn

Twelve associations and events received allocations from the Pride Parade Fund of Reykjavík Pride and Landsbankinn for the 2022 Pride Parade. Reykjavík Pride begins on Tuesday the 2nd of August, and the main event is the Pride Parade on Saturday, August 6th.
8 July 2022

More ways to utilise banking services

We now allow third party service providers to display information about our customers’ payment accounts in their own apps, provided the customer has given consent.
New temp image
29 June 2022

Landsbankinn changes interest rates

Variable interest rates on non-indexed housing mortgages increase by 0.85 percentage points (pp), to 6.25%. Fixed rates on new, non-indexed housing mortgages increase by 0.20-0.35 pp. Fixed rates on new, inflation-indexed housing mortgages increase by 0.20 percentage points (pp) while variable rates on inflation-indexed housing mortgages remain unchanged.
29 June 2022

New Head of Landsbankinn’s Customer Service Centre

Gróa Helga Eggertsdóttir has been hired as Head of Landsbankinn’s Customer Service Centre.
28 June 2022

New personnel in Corporate Finance

Guðmundur Már Thórsson and Júlíus Fjeldsted are new members of Landsbankinn’s Corporate Finance team.
Kristín Rut Einarsdóttir
27 June 2022

New Branch Manager in Hafnarfjörður

Kristín Rut Einarsdóttir has been appointed Branch Manager of Landsbankinn’s Hafnarfjörður branch.
23 June 2022

Congratulations to Alvotech for listing on First North Iceland

Following the listing of Alvotech’s shares on Nasdaq New York last week, the company has now also been listed on the Nasdaq First North Iceland Growth Market. 
New temp image
21 June 2022

Varied projects linked to the energy transition awarded sustainability grants

Six interesting projects have been awarded grants from Landsbankinn’s Sustainability Fund in the total amount of ISK 10 million. This is the initial allocation from the Fund.
16 June 2022

Successful listing of Alvotech on Nasdaq New York

Shares in Alvotech were admitted to trading on Nasdaq New York on 16 June.

By clicking "Allow All", you agree to the use of cookies to enhance website functionality, analyse website usage and assist with marketing.

More on cookies