Glitnir closes covered bond in Norway

glitnirGlitnir Bank in Norway recently announced it had successfully closed a covered bond issue of NOK 7 billion (approximately EUR 900 million).

The Iceland-based Nordic bank used its Norwegian subsitiary BN Boligkreditt AS to close the bond issue, which was exclusively made available to Norwegian investors.

The NOK 7 billion on its own is enough to secure all refinancing of Glitnir Bank ASA’s debt maturing in 2008, as well as some of the 2009 and later maturities. “I am very pleased that Glitnir Bank ASA has secured all of its required refinancing in 2008 by this successful covered bond transaction”, said Glitnir’s Executive Vice President Nordic Banking, Morten Bjornsen. “I am also delighted that we succeeded in placing the transaction at attractive margins, and how well it was received by the Norwegian investor base.”

Previous to this news, Glitnir had also posted positive first quarter results, despite the difficult global financial conditions. The bank recorded 8.6 percent profit growth and a 12 percent reduction in costs.

After a disastrous 2008 so far for the Icelandic economy as a whole, Glitnir’s success is a welcome development. The news does, however, come amid a growing tide of positive financial news from the north Atlantic nation, which has been increasingly vocal in protecting its image from romour and speculation.

The Icelandic Stock Exchange and the Icelandic krona have both benefitted from recent headlines and are showing signs of recovery in a continuingly difficult global market.

For further information, visit the Glitnir Bank website.