The Republic of Iceland marked a highly successful return to the Capital Markets in 2025 with a new €750 million 5-year bond
Republic of Iceland
Issuer Rating:
A1/A+/A
Size:
EUR750 million
Lead Managers:
Barclays, BNP Paribas, Citi, JP Morgan
Pricing Date:
20 May 2025
Settlement Date:
27 May 2025
Maturity Date:
27 May 2030 (T+4)
Coupon:
2,625%
Spread to mid-swaps:
m/s+42bps
Spread to benchmark:
OBL 2.400% Apr-30 +52.3bps
Re-offer price:
99,783%
Re-offer yield:
2,672%Transaction Summary
On Tuesday, 20th May 2025, the Republic of Iceland, rated A1 /A+ /A (stab/stab/stab) successfully returned to the Euro debt capital markets with a new EUR750 million benchmark due 27th May 2030.
The transaction was priced with minimal new issue concession at m/s+42bps, equivalent to a spread of 52.3bps vs the OBL 2.400% Apr-30, whilst amassing over EUR4.3 billion of high-quality orders. This represents the largest conventional orderbook on record for the Republic.
Joint lead managers for the new issue were Barclays, BNP, Citi and JP Morgan.
Pricing and Execution:
On 19th May 2025 at 09:23 UKT, the mandate was announced for a new 5-year Euro-denominated benchmark with 1-on-1 investor calls held with representatives of the Republic throughout the day. The Republic of Iceland concurrently announced an any-and-all tender offer for its EUR500 million 0.625% Notes due 3 June 2026, expiring 5.00pm CEST on Friday, 23rd May 2025.
Following positive investor engagement overnight, initial guidance was released to the market the following day at 08:14 UKT at m/s+50bps area. With orders accelerating in excess of EUR2.8 billion (excl. JLM interest), the Republic revised guidance 5bps tighter to m/s+45bps area (+/- 3bps WPIR) at 10:35 UKT. The high-quality demand supported setting the final size at this stage which was communicated at EUR750 million.
At 11:17 UKT, the high-quality orderbook surpassed EUR3.6 billion (excl. JLM interest) which enabled the spread to be set at m/s+42bps. This represented minimal new issue premium vis-à-vis the issuers EUR curve.
Books officially closed at 11:45 UKT with orders above EUR4.3 billion (excl. JLM interest). This represents the largest conventional ICELND orderbook on record, with only the inaugural Green 10-year ICELND benchmark due Mar-34 attracting higher total demand.
At 14:05 UKT, the new EUR750 million 2.625% May 2030 ICELND benchmark was priced at m/s+42bps with a re-offer yield of 2.672% p.a.
Distribution:
This transaction confirms the strong investor demand for the Republic of Iceland's credit in the international investor community, with a wide range of investors participating across the United Kingdom and Europe. Accounts from Germany / Austria / Switzerland received 25% of the allocations, Nordics 21%, UK 16%, Sothern EU 13%, Benelux 11%, France 8% and 6% to Others.
By investor type, Fund Managers led the book with 53% of allocations, followed by Central Banks / Official Institutions with 17%, while Banks received 17% and Insurance / Pensions took 12%. Hedge Funds rounded out the remainder of the book with 1% allocation
Attachment
250520 Iceland EUR750mn 5-year (May-30) - Final Press Release
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
ASML Stock: Strong Q2, but 2026 Growth Outlook Underwhelms
ASML Holding N.V. (NASDAQ:ASML) is one of the . ASML reported its second-quarter earnings on Wednesday, July 16th. Investors were hopeful that the chip-making equipment supplier would have bookings robust enough to support its 2026 growth ambitions The company itself said at an investor event last November that it saw 2026 as a growth year. However, it didn't mention how much growth it anticipated. According to several analysts, ASML is having a 'make or break' quarter for the company, which will seemingly determine its course for the rest of the year. 'ASML would need to double our second-quarter order estimates (of 5.3 billion euros) to comfort our 2026 revenue forecast.' -Barclays analyst Simon Coles told Reuters on July 15th. On July 16th, the company reported net sales of 7.7 billion euros ($8.95 billion) in the second quarter, ahead of estimates. Despite beating top and bottom line expectations for the second quarter, the company warned that it may not achieve growth in 2026, explaining that geopolitical uncertainty continues to cloud its prospects. A financial analyst monitoring the growth of an underlying index in the U.S. market. "Looking at 2026, we see that our AI customers' fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage." ASML Holding N.V. (NASDAQ:ASML) develops and sells advanced semiconductor equipment, including lithography, metrology, and inspection systems for chip manufacturing. While we acknowledge the potential of ASML as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
4 hours ago
- CNBC
Wall Street says McDonald's snack wrap revival is a hit so buy the stock
Wall Street is lovin' McDonald's newest menu item. Analysts at several firms have this week told clients that the return of the Snack Wrap — the fan favorite that was originally discontinued in 2016 — has been positive for the fast food giant. Investors hope the excitement around the product's return will help boost sales in the new quarter and can provide a jolt for an underperforming stock. The third quarter "has gotten off to a strong start helped by the relaunch of Snack Wrap," Evercore ISI analyst David Palmer wrote to clients in a Thursday note. U.S. same-store sales are tracking for a growth rate of around 7% in the third quarter, he said. However, Palmer forecasts 3% growth for the period, given the potential for a sluggish August. Barclays also said it expects the wrap to help lift traffic, a factor that prompted analyst Jeffrey Bernstein to declare McDonald's his top-pick stock among quick-service restaurants. Anecdotal evidence underscores the excitement around the wrap's return. Social media checks show anecdotes of locations selling out of the menu item and seeing unusually high foot traffic following its release, according to Wolfe Research. "We think excitement for Snack Wraps ... positively contributed to brand buzz/momentum to start 3Q," Greg Badishkanian, head of Wolfe's consumer team, wrote to clients on Tuesday. Evercore's Palmer said McDonald's has found a recipe for success with the product. It's an item that has been highly requested and comes at a "compelling" price of $2.99, the analyst said. On top of that, he pointed out that it plays into the trend of consumers focusing on protein in their snacks. MCD .SPX 3M mountain McDonald's vs. S & P 500, 3-months To be sure, the Snack Wrap's comeback is happening amid a tough point for the stock. Shares have underperformed the S & P 500 by 19 points since May and have seen relatively weaker gains on the year. Despite that muted action, Wall Street is optimistic. The average analyst polled by LSEG has a buy rating and expects shares to rise more than 10% over the next year. Wells Fargo analyst Zachary Fadem said investors can anticipate second-quarter same-store sales to turn positive. Then, current-quarter commentary will be in focus and should be positive given the performance of Snack Wraps thus far, he said. "We're buyers here," Fadem said in a Thursday note.
Bloomberg
6 hours ago
- Bloomberg
Hungary's Biggest Bank CEO Calls for Euro Adoption and Predictability
The new chief executive officer of Hungary's largest lender called for the adoption of the euro and for an end to ad-hoc policymaking under Prime Minister Viktor Orban that has sapped investor confidence and dented valuations. Hungary, whose economy has been in-and-out of recession since the pandemic, has 'decoupled' from eastern Europe by now, said Peter Csanyi, who took over the management of OTP Bank Nyrt. in May. It would be a 'small surprise' if the government met its downwardly revised 0.8% growth target for this year, he said.
