Bond issue - The Regional Development Institute
Saga Capital Investment Bank has completed a bond issue for the Regional Development Institute. The bonds were marketed through a closed bond offering to the amount of ISK 1 billion.
/*In view of the considerable demand, the aim is to add to the bond class later this year as regulations allow for an increase of ISK 2 billion.
Through the issue, the Regional Development Institute is acquiring funds to finance the institute’s lending for employment growth in rural areas, including innovative programs.
The institute’s bonds are 25 year annuity instruments in an open class reflecting HFF34, the Housing Authority Fund’s bond class, with 5% nominal interest rates and two annual instalments.
Askar Capital acted in an advisory manner on the lending and obtained offers from administrative banks. Saga Capital's Capital Markets managed the sale of the bonds and their listing on the Iceland Stock Exchange, OMX Nordic Exchange.