Today, Arion bank issued a EUR 300 million senior preferred notes. The notes have a maturity of 3 years and pay a coupon of 7.25% which corresponds to a spread of 407bp over mid-swaps.
The strong demand from investors saw a return of investor diversification for Arion Bank in the international bond market. The final orderbook stood firm at EUR 600m+ from over 70 individual accounts from more than 15 countries across Europe and Asia.
The transaction was launched in combination with a tender offer, announced on 15 May 2023, to holders of the Bank’s outstanding EUR 300 million notes due 27 May 2024 (ISIN: XS2262798494).
Joint Lead Managers for the transaction were Barclays, Deutsche Bank and UBS.