Landsbankinn raises ISK 4.58 billion in covered bond auction

Published 07/10/2025, 16:54
Landsbankinn raises ISK 4.58 billion in covered bond auction

REYKJAVIK - Landsbankinn, Iceland’s largest commercial bank, raised ISK 4.58 billion ($32.7 million) in a covered bond auction on Tuesday, according to a press release statement from the bank.

The auction included three bond series with different maturities. The bank accepted ISK 520 million in bids for its LBANK CB 27 series at a yield of 7.53%, bringing the total issuance in this series to ISK 67.28 billion.

For the LBANK CB 29 series, Landsbankinn received nine bids totaling ISK 2.7 billion and accepted ISK 2.6 billion at a yield of 7.47%. This increased the total amount issued in this series to ISK 46.44 billion.

The bank also accepted all ISK 1.46 billion in bids for its inflation-linked LBANK CBI 31 series at a yield of 3.79%, bringing the total issuance to ISK 19.34 billion.

Settlement for all three series is expected on October 14, 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.

Covered bonds are debt securities backed by a pool of assets, typically mortgages, that remain on the issuer’s balance sheet, providing additional security for bondholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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