Landsbankinn to Offer Covered Bonds via Auction

Landsbankinn, the Icelandic bank, is set to issue covered bonds for sale via an auction scheduled for Wednesday, September 9, at 15:00. The non-indexed series, LBANK CB 32, will be offered in the auction.

In conjunction with the auction, the bank will also facilitate a covered bond exchange offering. This will allow holders of the inflation-linked series LBANK CBI 26 to exchange their bonds for those purchased in the aforementioned auction. The clean price for the bonds is predetermined at 99.735.

The clean price of the bonds is a fixed value used in bond markets to determine the price at which a bond is bought and sold, excluding accrued interest. This ensures transparency and standardization in the bond exchange process.

Settlement for the covered bonds is expected to occur on September 16, 2026. Landsbankinn Capital Markets will manage the auction, providing a platform for institutional and retail investors to participate.

Credit ratings for the covered bonds are high, with Landsbankinn's covered bonds rated A+ by S&P Global Ratings, a rating that reflects the bank’s strong financial standing and positive outlook.

The issuance of covered bonds is a common practice in financial markets, providing banks with a stable and predictable source of funding. Covered bonds are secured by a pool of assets, typically mortgages or other types of loans, which reduces the risk of default for bondholders.