APPLICABLE FINAL TERMS
9 January 2023
ARION BANK HF
Legal Entity Identifier (LEI): RIL4VBPDB0M7Z3KXSF19
Issue of ISK 3,420,000,000 5.50 per cent Fixed Rate Covered Bonds due October 2027
under the €2,000,000,000 Covered Bond Programme
PART A - CONTRACTUAL TERMS
Terms used herein shall be deemed to be defined as such for the purposes of the Conditions (the Conditions) set forth in the Base Prospectus dated 9 February 2012, 23 August 2013, 5 December 2014, 18 December 2015, 23 December 2016, 5 January 2018, 8 January 2019, 9 January 2020 and 16 July 2021 which are incorporated by reference in the Base Prospectus dated 12 October 2022. This document constitutes the Final Terms of the Covered Bonds described herein for the purposes of the Prospectus Regulation and must be read in conjunction with the Base Prospectus dated 12 October 2022 which constitute a base prospectus for the purposes of the Prospectus Regulation, including the Conditions incorporated by reference in the Base Prospectus, in order to obtain all the relevant information. Copies of such Base Prospectus and Final Terms are available for viewing at Borgartúni 19, 105 Reykjavík, Iceland and on the Luxembourg Stock Exchange's website at www.bourse.lu and copies may be obtained from the registered office of the Issuer and from the specified office of the Agent in London.
1. (a) Series Number:
- Tranche Number:
- Series which Covered Bonds will be consolidated and form a single Series with:
- Date on which the Covered Bonds will be consolidated and form a single Series with the Series specified above:
12
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ISK 3,220,000,000 Fixed Rate Covered Bonds due October 2027 issued on 12 May 2022
12 January 2023
(e) | Trade Date | 5 January 2023 | |
2. | Specified Currency or Currencies: | ISK |
3. Aggregate Nominal Amount:
− | Tranche: | 3,420,000,000 | |
− | Series: | 11,520,000,000 | |
4. | Issue Price: | 93.2852% of the Aggregate Nominal Amount | |
5. | (a) | Specified Denominations: | ISK 20,000,000 |
(b) | Calculation Amount | ISK 20,000,000 | |
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6. | (a) | Issue Date: | 12 January 2023 |
(b) | Interest Rate: | Fixed Rate | |
(c) | Interest Commencement Date: | Issue Date | |
7. | Maturity Date: | Interest Payment Date falling in or nearest to 12 | |
October 2027 | |||
8. | Extended Final Maturity Date: | Interest Payment Date falling in or nearest to 12 | |
October 2028 |
9. | Interest Basis: | See paragraph 17 below |
10. | Redemption/Payment Basis: | Subject to any purchase or cancellation or early |
redemption, if any, the Covered Bonds will be | ||
redeemed on the Maturity Date or Extended Maturity | ||
Date (as applicable) at 100 per cent. of their then | ||
outstanding nominal amount, plus accrued but unpaid | ||
interest. | ||
11. | Change of Interest Basis: | Not applicable |
12. | Put/Call Options: | Not Applicable |
13. Date Board approval for issuance of 27 July 2022 Covered Bonds obtained:
14. | Method of distribution: | Non-syndicated |
15. | Name and address of the Calculation Agent | Arion Bank hf. |
Borgartún 19, 105 Reykjavík, Iceland |
PROVISIONS RELATING TO INFLATION LINKED COVERED BONDS
16. | Inflation Linked Covered Bond Provisions Not Applicable |
PROVISIONS RELATING TO INTEREST (IF ANY) PAYABLE
17. | Fixed Rate Covered Bond Provisions | Applicable |
(a) | Rate(s) of Interest: | 5.50 per cent. per annum payable semi-annually in |
arrear on each Interest Payment Date | ||
(b) | Interest Payment Date(s): | 12 April and 12 October in each year up to and |
including the Final Maturity Date as applicable | ||
2 |
(c) | Fixed Coupon Amount(s): | Not Applicable | |
(Applicable to Covered Bonds in | |||
definitive form) | |||
(d) | Broken Amount(s): | Not Applicable | |
(Applicable to Covered Bonds in definitive form) | |||
(e) | Day Count Fraction: | 30/360 | |
(f) | Determination Date(s): | Not Applicable | |
18. | Floating Rate Covered Bond Provisions | Not Applicable | |
19. | Zero Coupon Covered Bond Provisions | Not Applicable | |
20. | Inflation Linked Non-Amortising Covered | Not Applicable | |
Bond Provisions |
PROVISIONS RELATING TO REDEMPTION
- Issuer Call
- Investor Put
- Final Redemption Amount of each Covered Bond
- Early Redemption Amount of each Covered Bond payable on redemption for taxation reasons:
Not Applicable
Not Applicable
ISK 20,000,000 per Covered Bond of ISK 20,000,000 Specified Denomination
As set out in Condition 8.7(b)
25. | Relevant Percentage: | As at the Issue Date 1.4 per cent |
GENERAL PROVISIONS APPLICABLE TO THE COVERED BONDS | ||
26. | Form of Covered Bonds: | ISD Covered Bonds |
ISD Covered Bonds issued in uncertificated and | ||
dematerialised book entry form. See further item 7 of | ||
Part B below. | ||
27. | New Global Covered Bond: | No |
28. | Additional Financial Centre(s): | Not Applicable |
29. | Talons for future Coupons or Receipts to | No |
be attached to definitive Covered Bonds in | ||
bearer form (and dates on which such | ||
Talons mature): |
30. Details relating to Instalment Covered Not Applicable Bonds; amount of each instalment, date on
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which each payment is to be made: | ||
31. | Redenomination: | Redenomination not applicable |
DISTRIBUTION
32. (a) If syndicated, names of Managers: Not Applicable
(b) | Date of Subscription Agreement: | Not Applicable |
(c) | Stabilising Manager(s) (if any): | Not Applicable | |
33. | If non-syndicated, name of Dealer: | Arion Bank hf. | |
34. | U.S. Selling Restrictions: | Reg. S Category 2; TEFRA C |
35. Prohibition of Sales to EEA Retail Not Applicable Investors
36. | Prohibition of Sales to UK Retail Investors | Applicable. |
37. Prohibition of Sales to Belgian Consumers: Applicable
38. | Relevant Benchmark: | Not Applicable |
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PART B - OTHER INFORMATION | |||||
1. | LISTING | AND | ADMISSION | TO | Application has been made by the Issuer (or on its |
TRADING | behalf) for the Covered Bonds to be admitted to | ||||
trading on the NASDAQ Iceland hf. (the Icelandic | |||||
Stock Exchange) and listing on the Regulated Market | |||||
of the NASDAQ Iceland hf. with effect from or prior | |||||
to the first Interest Payment Date. | |||||
Estimate of | total | expenses related | to | ISK 115,000 | |
admission to trading: |
2. RATINGS
Ratings: | The Covered Bonds to be issued have not been rated. |
- INTERESTS OF NATURAL AND LEGAL PERSONS INVOLVED IN THE ISSUE
Save for any fees payable to the Dealer, so far as the Issuer is aware, no person involved in the issue of the Covered Bonds has an interest material to the offer. The Dealer and its affiliates have engaged, and may in the future engage, in investment banking and/or commercial banking transactions with, and may perform other services for, the Issuer and its affiliates in the ordinary course of business. - REASONS FOR THE OFFER, ESTIMATED NET PROCEEDS AND TOTAL EXPENSES
(i) | Reasons for the offer: | As set out in "Use of Proceeds" in the Prospectus |
(ii) | Estimated net proceeds: | ISK 3,190,353,840 |
5. YIELD (FIXED RATE COVERED BONDS ONLY)
Indication of yield: | 5.5% per annum |
- PERFORMANCE OF FORMULA/CPI, EXPLANATION OF EFFECT ON VALUE OF INVESTMENT AND ASSOCIATED RISKS AND OTHER INFORMATION CONCERNING THE UNDERLYING (INFLATION LINKED COVERED BONDS AND INFLATION LINKED NON AMORTISING COVERED BONDS ONLY)
Not Applicable - OPERATIONAL INFORMATION
(i) | ISIN Code: | IS0000034098 |
(ii) | Common Code: | Not Applicable |
(iii) | CFI: | DBFSFR, as set out on the website of the |
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Disclaimer
Arion banki hf. published this content on 06 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 January 2023 14:49:03 UTC.