SOURCE: Glitnir

January 12, 2007 11:30 ET

Glitnir Bank issues USD 1.25 Global bond

REYKJAVIK, ICELAND -- (MARKET WIRE) -- January 12, 2007 -- Glitnir Bank concluded today the sale of a USD 1.25 billion bond offering. The transaction, a 5-year floating rate note, pays a margin of 47 basis points over 3 month US Dollar LIBOR.

The bonds, which were issued in Global 144A/ Reg S format, were sold to institutional investors in the US, Europe and Asia. The transaction was comprehensively oversubscribed, with total demand amounting to US$ 3.4 billion. The transaction was arranged by Barclays Capital, Citigroup and Deutsche Bank. Selling group members are DZ Bank and Natixis.

"We are pleased with the terms which, at 10 basis points over the Bank's CDS spreads, represent a a positive change from 2006 and clearly demonstrate the encouraging developments we have seen in recent months," says Tómas Kristjánsson, CFO of Glitnir Bank. "We highly appreciate the faith and commitment that investors continue to show in our credit. Demand for this exceptional transaction has exceeded our expectations, and represents a promising start to our funding programme for 2007."

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