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Nordic bank Glitnir sold ISK 15bn ($200m) of five year mandatory convertible bonds in a closed offer to Icelandic institutional investors that ended yesterday.

The bonds are subordinated and count as Tier 1 capital and strengthen the bank’s capital ratio considerably. Glitnir Capital Markets was sole manager of the offering.

Glitnir CEO, Larus Welding, said, “The convertible issue was successfully concluded in the face of uncertain market conditions and demonstrates investors trust in Glitnir’s underlying operation and credit. The issue was focused on Icelandic institutional investors which know the bank, in particular the pension funds, and was well received by the market.“

The bonds will convert into shares in Glitnir banki hf in five years. The issue of the bonds and the authorisation for the increase in share capital is subject to the approval of a shareholders’ meeting which will be held today, 19 March, at Glitnir headquarters in Iceland.

Glitnir bank operates in ten countries around the world and is scheduled to open an office in India in the second half of 2008. The bank‘s international expansion is mainly driven by two specialised industry sectors – seafood and sustainable energy. Glitnir has developed significant industry expertise in these areas, based on its Icelandic and Norwegian heritage.

Glitnir also offers a broad range of financial services, including corporate banking, investment banking, capital markets, investment management and retail banking.

For futher information visit www.glitnirbank.com

Contact:
Bjørn Richard Johansen, Managing Director, Global Corporate Communication, mobile +47-47 800 100, e-mail: brj@glitnir.no