Today, Landsbankinn completed the sale of Additional Tier 1 (AT1) securities in the amount of USD 100 million. This marks the Bank’s inaugural AT1 securities issuance, with the securities sold to investors at a fixed interest rate of 8.125%.
Total demand was strong, exceeding USD 400 million, with participation from over 70 investors from the US, Europe and Asia.
Lilja B. Einarsdóttir, CEO of Landsbankinn: “This issuance is a further step towards optimisation of the Bank’s capital structure, simultaneously strengthening our capital base and diversifying our funding sources. The favourable terms and strong demand in today’s issuance reflect the Bank’s solid access to international markets.”
The securities have no fixed maturity date but are callable by the issuer after 5.5 years. They are subordinated to all other claims, except equity. The expected credit rating of the AT1 securities is BB from S&P Global Ratings. The aim is to list the securities on Euronext Dublin as of 18 February 2025.
Bank of America, Citibank and JP Morgan acted as joint managers for the issuance.
