Landsbankinn's financing rests on three main pillars - deposits from customers, market funding and equity. In October 2016, international rating agency Standard & Poor's revised Landsbankinn's credit rating to BBB/A-2 with a positive outlook.
|Issue date||October 2016|
Landsbankinn has listed a Euro Medium Term Note (EMTN) programme in the amount of EUR 1.5 bn for the issue of bonds on overseas markets. The first issue under the ENTM programme was made in 2015 and further issues followed in 2015. Landsbankinn issued 4½Y bonds in the amount of EUR 500 m in September 2016 and 4Y bonds in the amount of SEK 1,000 m in November 2016. The Bank also tapped existing bond classes in April in the amount of NOK 250 m and SEK 100 m. Landsbankinn utilised funds from bond issues first and foremost to make prepayment of bonds issued to LBI hf. International debt issuance under the EMTN programme now weights most heavily in the Bank's financing.
Landsbankinn issued bonds to LBI hf. in accordance with the contractual settlement governing the transfer of assets and liabilities from LBI hf. to Landsbankinn in 2009. In 2016, Landsbankinn paid off in full all EUR-denominated bonds and made partial pre-payment of USD-denominated bonds. Bonds issued to LBI hf. amounted in total to USD 441 m at year-end 2016 and mature in 2020 and 2024.
Landsbankinn has held a credit rating from international rating agency Standard & Poor’s since early 2014. In October 2016, the Bank's rating was raised a notch and is currently BBB/A-2 with a positive outlook.