Bond issues for
Kopavogur and Arborg
Saga Capital Investment Bank has agreed to undertake the sale and management of open bond issues on the domestic securities market for the municipalities of Kopavogur and Arborg.
A total of ISK 2.4 billion of the intended ISK 3 billion, has already been sold for Kopavogur. The Arborg issue is for ISK 1 billion with ISK 860 million sold at this time.
The objective is to ensure funding for construction developments in the upcoming months and to meet instalments on older loans. The bond issues are expected to close before the end of the year.
The Kopavogur instruments are indexed annuity bonds in a 10 year open class with 5% nominal interest rates and two instalments per year. The Arborg bonds are also indexed annuity bonds reflecting HF24, the Housing Authority Fund’s bond class. Nominal interest rates are 5% with two yearly instalments.
Askar Capital represents the municipalities while Saga Capital's Capital Markets manages the issues and will handle the listing on the Icelandic Stock Exchange.