Glitnir

Glitnir

November 13, 2006 14:52 ET

Glitnir Bank Issues USD 500 Million of Floating Rate Notes

REYKJAVIK, ICELAND--(CCNMatthews - November 13, 2006) - Glitnir Bank issued $500 million of Floating Rate Notes on 10 November. The notes, due in January 2011, were issued in response to notable demand from institutional investors in the US. The deal pays a margin of 44 basis points over 3 month US$ LIBOR with an issue price of par. The offering was the first to be made off Glitnir's recently-signed US$ 5 billion US Medium Term Note Programme, which was arranged by JP Morgan Securities.

This transaction is the first public issue of senior debt by Glitnir since February 2006. The Bank has abstained from issues of senior benchmark transactions for the majority of this year, preferring instead to raise bank capital through public issues, and senior debt in private placement format. Glitnir announced that it had re-financed all of its 2007 maturities at the end of August so this transaction is intended to help pre-fund balance sheet growth in 2007 and to maintain liquidity at high levels.

JP Morgan Securities and Merrill Lynch acted as joint Bookrunners for this transaction. Wachovia Capital Markets acted as sole co-manager.


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