Arion Bank has today issued a new USD-denominated Additional Tier 1 transaction for a total of $100 million. The bond issue was oversubscribed, with orders received from over 90 investors with total demand of around $500 million.
The AT1 instrument is eligible as Additional Tier 1 capital under the Icelandic Financial Undertakings Act No. 161/2002. The issuance strengthens the Bank's own funds and is a milestone towards reaching a more optimal capital structure in line with the Bank's medium-term targets.
The bonds have a fixed coupon of 6.25%. The notes will have a standalone and consolidated 5.125% CET1 trigger with equity conversion. The notes will be assigned a BB rating from S&P.
Arion Bank mandated Barclays, Goldman Sachs International and Morgan Stanley as Joint Lead Managers.
For further information please contact Theodór Fridbertsson, head of Arion Bank's investor relations, at ir@arionbanki.is
This is information that Arion Bank hf. is obliged to make public pursuant to the EU Market Abuse Regulation.
MiFID II professionals/ECPs-only/No PRIIPs KID - Manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in EEA or UK.
