Glitnir Bank issued US$ 250 million perpetual hybrid Tier 1 capital notes. The issue is callable by Glitnir Bank after 10 years. The terms of the transaction are 265 basis points over 10 year US Treasury bonds, equivalent to 208 basis points over LIBOR. Based on 1H 06 figures the Bank's capital ratios now stand at 10.2% for Tier 1, and CAD at 15.3%.
The transaction was structured in US 144a format and was sold overwhelmingly to US institutional investors. The transaction was more than 5 times oversubscribed, with total demand amounting to US$ 1.3 billion. The Bookrunners were Credit Suisse and UBS Investment Bank. Barclays Capital, Deutsche Bank and Wachovia Securities acted as Co-Lead Managers in the transaction. This was Glitnir's first issue of Tier 1 capital in the US and underlines the Bank's strong commitment to that market.
"It is very gratifying to see the extent of the appetite for this Tier 1 issue" says Tómas Kristjánsson, CFO at Glitnir. "The issue will further strengthen the Bank's capital base, bringing with it additional solidity and the ability to develop the Bank's business further. The extraordinary demand seen from investors for this deal exceeded our expectations utterly. A broad group of investors took part in the deal with 43 institutions ultimately being allocated paper. One of our principal goals this year has been to reinforce the Bank's liquidity position and capitalisation to a high degree. This transaction is yet another vindication of our business model and our transparency, and a clear indication of the confidence that investors continue to have in Glitnir Bank."
For further information: Tómas Kristjánsson, CFO, mobile +354 844 4656, office +354 440 4656, or e-mail email@example.com
Bjørn Richard Johansen, International Communication and Public Affairs Director, mobile +47-47 800 100 or e-mail firstname.lastname@example.org
Viðskiptablaðið er 25 ára og af því tilefni býðst nýjum áskrifendum að kaupa áskrift á 50% afslætti.
Afmælisverðið er aðeins 2.500 krónur.
Tilboðið er fyrir nýja áskrifendur. Núverandi áskrifendur geta bætt við sig áskrift á þessu verði. Gildir í 4 mánuði. Áskrifendur fá Viðskiptablaðið, Frjálsa verslun og Fiskifréttir sent ásamt vefaðgangi að vb.is og fiskifrettir.is