Bond issues for Kopavogur
and Arborg now closed
Saga Capital Investment Bank has completed the bond issues for Kopavogur and Arborg municipalities. Bonds were sold for ISK 3 billion for Kopavogur and ISK 1 billion for Arborg with Icelandic pension funds being the main buyers.
The municipalities have thus achieved their objective of ensuring funding for continued constructions and to meet instalments on older loans.
The Kopavogur issue, held on 16 – 29 December, was for indexed annuity bonds in a 10 year open class with 5% nominal interest rates and two instalments per year. The Arborg issue was also for indexed annuity bonds reflecting HF24, the Housing Authority Fund’s bond class. Nominal interest rates are 5% and two yearly instalments.
Askar Capital represented the municipalities while Saga Capita's Capital Market managed the issues and the listing on the Iceland Stock Exchange.