Public offering of shares in Iceland Seafood International

Kvika lists subordinated bonds

Tuesday 22. desember 2015

Kvika has now concluded the sale of its KVB 15 01 series of subordinated bonds, with a nominal value of ISK 550m. This is the first time since the onset of the financial crisis in October 2008 that an Icelandic bank has sold subordinated bonds to investors. The bonds mature in 10 years, are classified as Tier II capital, and will be listed on the Nasdaq Iceland exchange before the year-end.

The bonds are sold at a yield of 5.50-6.25%, indexed as of the first call date. They are callable by the issuer five years after the original date of issue.

The total authorised issuance volume for KVB 15 01 is ISK 750m nominal value.

“This is a milestone in the evolution of the Icelandic financial market. We at Kvika are very proud to lead the way, as the first Icelandic bank since the crash to sell subordinated bonds to private investors. Subordinated bonds are a new addition to our equity financing options and an important element in stable long-term financing. With this strategic move, Kvika enhances its flexibility and efficiency. By buying the bonds, investors express their confidence in the Bank and its policy, which is extremely valuable to us. And last but not least, it is a turning point for Kvika to be an issuer of securities listed on the Nasdaq Iceland exchange six months after the Bank's establishment by merger,” says Sigurður Atli Jónsson, CEO of Kvika.