Landsbankinn, one of Iceland's largest lenders, priced a EUR 300 million five-year green bond at a coupon of 4.0 per cent on Tuesday, drawing orders of more than EUR 1,650 million from over 100 investors.
The transaction, priced at mid-swaps plus 110 basis points, was issued under Landsbankinn's Sustainable Finance Framework, which has been reviewed by Sustainalytics. Proceeds are earmarked for eligible green assets in line with the framework.
ORDER BOOK STRETCHES ACROSS REGIONS
The order book of more than EUR 1,650 million from over 100 investors implies significant oversubscription, with demand drawn from the United Kingdom, the Nordics, Continental Europe and Asia, according to the bank's investor relations announcement. The geographic breadth points to the depth of the international investor base that Landsbankinn has cultivated for its senior benchmark issuance.
The pricing at MS+110 basis points reflects the risk premium demanded for a five-year Icelandic bank credit at current European market conditions. The 4.0 per cent fixed coupon delivers a competitive yield for investors seeking euro-denominated exposure with a green use of proceeds.
Barclays, BofA Securities, Citi and JP Morgan acted as joint lead managers on the transaction. The mandate lines up an established syndicate of international houses that have handled a number of Nordic and European bank benchmark trades in recent years.
GREEN LABEL UNDER SUSTAINABLE FRAMEWORK
The bond is being issued under Landsbankinn's Sustainable Finance Framework, which has been reviewed by second-party opinion provider Sustainalytics. Such frameworks set out the categories of eligible assets that can be financed with proceeds from green, social or sustainability bonds, and provide the basis on which investors judge the credibility of the label.
For Landsbankinn, the transaction extends the bank's engagement with sustainable finance markets and provides funding tied to its portfolio of eligible green assets. Icelandic banks have used sustainable finance instruments to diversify their investor base and to signal alignment with their environmental strategies.
The bond is scheduled to be admitted to trading on Euronext Dublin on 12 May 2026, providing a listing venue frequently used by European bank issuers for debt capital markets transactions. The listing gives institutional investors additional transparency and secondary-market visibility over the note.
The transaction is part of Landsbankinn's regular international funding programme, and follows previous benchmark issuance from the group in the euro market. It will support the bank's balance-sheet needs while reinforcing its position as a repeat issuer in the European sustainable bond market.
Icelandic bank issuance is closely watched given the country's specific economic profile and the memory of the 2008 banking crisis. Landsbankinn, now a state-owned lender, has rebuilt its market access over successive transactions and today counts a broad international investor base among the buyers of its senior benchmark debt.
With more than EUR 1,650 million of orders for a EUR 300 million issue, the transaction underlines continued investor appetite for European bank green paper. That backdrop provides useful context for other regional banks weighing sustainable finance issuance in the euro market in the months ahead.
Landsbankinn's investor relations team confirmed the transaction details in a note published on the bank's website, setting out the size, tenor, coupon, spread and lead-manager line-up. The bank has consistently emphasised the role of its Sustainable Finance Framework in supporting future benchmark issuance across a range of eligible categories.