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Landsbanki bond used to finance private project

Alex — Sat, 07 Nov 2009 08:19:25 +0000

The bond which the investment fund Fyrirtaekjabref Landsbankans bought from Bjorgolfur Gudmundsson in 2005 for ISK 400 million was used to finance the setting up of a memorial fund for Gudmundsson’s daughter.

According to the business paper Vidskiptabladid, the owners of Landsbanki felt at the time that it was quite natural to finance the founding of the fund; but the fund was actually begun at the beginning of 2005 when Gudmundsson and his wife deposited ISK 500 million.

Fyrirtaekjabref Landsbankans was a business investment fund owned by Landsbanki. Bjorgolfur Gudmundsson was majority owner and chairman of Landsbanki at the time.

His daughter Margret died in an accident in 1989 aged just 33. Since its establishment, the Margret Bjorgolfsdottir Memorial Fund has regularly donated money to all sorts of worthy causes.

Saving the krona with words and intelligence?

Alex — Wed, 18 Feb 2009 09:01:08 +0000

Gylfi Magnusson, Icelandic Minister of Commerce believes the time may have come to negotiate with foreigners clamouring to cash in their Icelandic krona Glacier Bonds for foreign currency, and instead offer sections of the foreign assets of Icelandic banks and pension funds.

It is not currently possible to exchange Icelandic kronur in very large amounts, because there is the distinct possibility that a total relaxation of the rules would mean an instant transferral of billions of kronur away from Iceland because of Glacier Bonds government bonds and the assets of foreigners in Icelandic banks, including the Central Bank of Iceland.

Gylfi Magnusson says it is important to either keep the money invested in Iceland or to find a way to allow it to leave the country without having a serious effect on the foreign exchange market. No direct dialogue has yet taken place with the bondholders but there have been advances in the fields of turning the bonds into long term loans or swapping them for Icelandic bank assets abroad.

The matter is under the jurisdiction of the Central Bank, so the decision must come from there, mbl.is reports. But Magnusson says there is no obstacle in the way of trying to set up a dialogue.

Glitnir bank sells bonds for $200m (ISK 15bn)

Chris Bolwig — Wed, 19 Mar 2008 08:24:18 +0000

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