Landsbankinn raises ISK 12.2bn in covered bond auction

Published 14/08/2025, 18:36
Landsbankinn raises ISK 12.2bn in covered bond auction

REYKJAVIK - Landsbankinn, Iceland’s largest commercial bank, has raised ISK 12.22 billion ($87.8 million) in a covered bond auction held Thursday, according to a press release from the bank.

The auction included offerings across three bond series with varying maturities. In the LBANK CB 27 series, the bank accepted ISK 7.26 billion of the ISK 7.34 billion in bids received, at a yield of 7.92%. Additionally, the bank will issue ISK 20 billion in this series for its own use, bringing the total amount in the series to ISK 63.54 billion.

For the LBANK CB 29 series, all ISK 3.2 billion in bids were accepted at a yield of 7.80%, with the bank issuing an additional ISK 15 billion for its own use. This will increase the total amount in this series to ISK 40.16 billion.

In the inflation-linked LBANK CBI 31 series, the bank accepted ISK 1.76 billion of the ISK 2.8 billion in bids received, at a yield of 3.96%. This brings the total amount in this series to ISK 15.72 billion.

Settlement for the auction is expected on August 21, 2025. The covered bonds are rated A+ with a stable outlook by S&P Global Ratings and are issued under a license from Iceland’s Financial Supervisory Authority.

Arion banki, Islandsbanki, and Kvika serve as market makers for Landsbankinn’s covered bonds, which are issued in accordance with Iceland’s Act No. 11/2008 and FME’s rules No. 190/2023.

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