Lands­bank­inn issu­es green bonds in euros

Landsbankinn hf. has today concluded the sale of floating rate bonds with a maturity of 3 years in the amount of SEK 850m and NOK 500m. The bonds were priced at a spread of 80bp over 3-month STIBOR and 79bp over 3-month NIBOR. In addition, the bank sold bonds with a maturity of 2 years in the amount of SEK 850m at a spread of 65bp over 3-month STIBOR. The bonds are expected to be rated BBB by S&P Global Ratings.

Landsbankinn's Board of Directors has decided to exercise an authorisation to purchase the Bank's own shares, which was approved at the Bank's AGM on 24 March this year. The buyback programme allows for the maximum purchase of 57 million shares, or 0.24% of issued shares. Landsbankinn has previously offered shareholders the chance to sell their shares in the Bank, most recently in August 2021. Landsbankinn offers to purchase shares from shareholders during a repurchase period, extending from 1 November 2021 up to and including 15 November 2021. Shareholders interested in accepting the Bank’s offer must complete a notification form and submit it to the Bank. The notification form is available on the Bank’s website. Notifications will be processed throughout the period in the order in which they are received by the Bank until the maximum (of 57 million shares) is reached. If the maximum is reached during the repurchase period no further notifications will be processed. In accordance with the AGM's decision, Landsbankinn offers to purchase each share during the repurchase period at a share price equivalent to the proportion of equity belonging to the Bank's shareholders and the Bank's share capital, according to its most recently published financial statements prior to the commencement of the repurchase period. Based on Landsbankinn's interim results for the first nine months of 2021, the equity held by the Bank's shareholders amounts to ISK 275,343 million and outstanding shares number 23,623 million shares. In accordance with the above, Landsbankinn offers to purchase each share at a price of ISK 11.6558 during the repurchase period. Total shares in the Bank number 24,000 million. The Bank’s shareholders are 869. The National Treasury holds 23,567 million shares, or around 98.2% of issued shares. The Bank holds around 377 million own shares, or around 1.57% of issued shares. Other shareholders than the National Treasury and the Bank hold around 56 million shares, or around 0.23% of issued shares. Further information and instructions for shareholders interested in accepting the Bank’s offer are available on Landsbankinn’s website, www.landsbankinn.is/endurkaup. Further information is also provided by phone, +354 410 4040, and by email to vl@landsbankinn.is.

S&P Global Ratings has today published a report on Landsbankinn’s credit rating where an unchanged long-term credit rating was confirmed at BBB/A-2 with stable outlook.

Bergsteinn Ó. Einarsson has been hired as Managing Director of Risk Management at Landsbankinn and Sara Pálsdóttir has been hired as Managing Director of Community, a new division of the Bank which incorporates human resources, marketing, education, communication, sustainability and the Economic Research department.

Hrefna Ösp Sigfinnsdóttir, Managing Director of Asset Management & Capital Markets at Landsbankinn, has resigned her position with the Bank, where she has worked since 2010. She has already ceased employment.

Landsbankinn's Board of Directors has decided to exercise an authorisation to purchase the Bank's own shares, which was approved at the Bank's AGM on 24 March this year. The buyback programme allows for the maximum purchase of 57 million shares, or 0.24% of issued shares. Landsbankinn has previously offered shareholders the chance to sell their shares in the Bank, most recently in December 2018.

Landsbankinn's profit was ISK 14.1 billion during the first half of 2021, compared with a loss of ISK 3.3 billion for the same period in 2020. Return on equity (ROE) for the period was 10.8% on an annualised basis, compared with -2.7% during the same period of 2020.

Perla Ösp Ásgeirsdóttir, Managing Director of Risk Management at Landsbankinn, has resigned her position with the Bank and ceased employment.  

The Bank’s profit in the first three months of 2021 amounted to ISK 7.6 billion. Return on equity (ROE) was 11.7%.