Íslandsbanki hf. launched its inaugural issue of Additional Tier 1 notes as part of its plan to optimise its capital structure. The issue of SEK 750 million perpetual notes with a 5-year call was placed with investors across Scandinavia and continental Europe and was considerably oversubscribed. The transaction pays a coupon of 3-month STIBOR +475 basis points for the life of the notes and features a temporary write-down structure, a 5.125% CET 1 trigger. The Notes are expected to be rated BB- by Standard & Poors. The issue will be listed on GEM Euronext Dublin on 28 September 2021.