Arion Bank aims to issue approximately ISK 30 billion of benchmark covered bonds in 2019.
The minimum size of each benchmark series is ISK 10 billion. The size of each benchmark of the total issue depends on market conditions and other factors. New benchmarks will be added in 2019.
Covered bond offerings will be held every month. Offerings will normally be held on the first Wednesday of every month and settlement will be one week later – see dates below.
Landsbankinn, Íslandsbanki and Kvika banki are market makers for covered bonds. The market makers will submit bids and asks for the bonds every day. The minimum offers at nominal value for benchmark series, from each market maker, shall be ISK 80 million and the minimum amount for other series shall be ISK 20 million. In the case of benchmark series, if the outstanding nominal value is less than ISK 10 billion, the total offers shall be ISK 60 million from each market maker. If the series is more than ISK 10 billion offers shall be ISK 80 million.
Arion Bank will continue its monthly offerings of commercial papers. Offerings will take place in mid-month and settlement is usually on the 20th day of each month. The total issue of commercial paper is undetermined and will be dictated by market conditions.
The Bank intends to issue internationally on a regular basis through its Euro Medium Term Note (EMTN) program. The Bank aims to issue 1-2 benchmarks a year amounting to approximately €300-500 million. The Bank will also hold smaller issues in Norwegian kroner or Swedish kronor and/or other currencies depending on the market conditions.
Arion Bank will explore further opportunities to issue subordinated bonds in 2019.
Arion Bank plans to diversify its funding and will examine other funding options and add to its funding channels if this is advantageous for the Bank. The Bank may therefore issue unsecured bonds, subordinated bonds or covered bonds in foreign currencies and/or Icelandic krónur if there is sufficient demand from investors. The amounts and timing of such funding depend on the market conditions and the general interest of investors.
Covered bond offerings will be held on the following dates:
|January||9 January 2019|
|February||6 February 2019|
|March||6 March 2019|
|April||3 April 2019|
|May||8 May 2019|
|June||5 June 2019|
|July||3 July 2019|
|August||7 August 2019|
|September||4 September 2019|
|October||2 October 2019|
|November||6 November 2019|
|December||4 December 2019|
Arion Bank reserves the right to amend this schedule, including by cancelling, increasing the number or changing the offering dates, changing the amount to be issued or making other changes as necessary, without advance notice.