Latest news with #Islandsbanki
Yahoo
08-08-2025
- Business
- Yahoo
Fitch Revises Iceland´s Outlook to Positive; Affirms IDR at ‘A'
Fitch Ratings has revised the Outlook on Iceland's Long-Term-Foreign-Currency (LT FC) Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'A'. The Positive Outlook reflects Iceland´s strengthened public finances. General government debt is projected to fall significantly in 2025 after the successful settlement of the Housing Financing Fund´s (HF Fund) liabilities and the full privatisation of Islandsbanki. Progress continues in diversifying the economy into higher-value-added sectors, such as pharmaceuticals, ICT and biotechnology. Iceland's abundant renewable energy sources and competitive energy prices have attracted investments in energy-intensive data centres. There is also strong potential in aquaculture, where Iceland has a global competitive advantage. Increased confidence in a material and sustained decline in the government debt/GDP ratio and continued strong growth and evidence of economic diversification that reduces Iceland's vulnerability to external shocks, could individually or collectively lead to positive rating action. A marked deterioration in the debt/GDP trajectory, for example, from a sustained period of fiscal loosening or a severe economic shock, for example, from a significant slowdown in the global economy, could individually or collectively lead to negative rating action.
Reuters
28-05-2025
- Business
- Reuters
Islandsbanki to request merger talks with Kvika banki
COPENHAGEN, May 28 (Reuters) - Islandsbanki ( opens new tab on Wednesday announced that its board of directors will contact Kvika banki ( opens new tab to request the start of merger talks between the two companies, saying that a combination could benefit Iceland's financial system. Islandsbanki said in a statement that the merger discussions should take place based on the market value of both companies, but that it was willing to offer a 10% premium on Kvika's market capitalisation for the calculation of exchange ratios. Kvika banki on Wednesday had a market capitalisation of 73.77 billion Icelandic crowns ($581.19 million), including its unlisted shares, according to LSEG data. ($1 = 126.9300 Icelandic Crowns)
Reuters
13-05-2025
- Business
- Reuters
Iceland launches Islandsbanki sale in push to clear 2008 crisis legacy
LONDON, May 13 (Reuters) - Iceland launched the sale of nearly half of its 45.2% stake in Islandsbanki on Tuesday, as its finance minister told Reuters that recent global market turmoil has not dented investor interest in the country. Bookrunners put a 20% stake in the lender on sale on behalf of the government on Monday in a process that would prioritise domestic retail investors. The offering could be increased to cover the full stake if investor demand is sufficient. "There is a window of calm," Minister of Finance and Economic Affairs Daoi Mar Kristofersson told Reuters in an interview, referring to a break in recent global market turmoil hallmarked by trade tariffs and geopolitical uncertainty. Shares are offered at a fixed price of 106.56 Icelandic krona - or a 5% discount over the average price of the last 15 trading days - to retail investors. Larger and institutional investors can bid in a Dutch auction with the minimum price matching that of the retail offering, the bookrunners said in a note seen by Reuters. The sale is coordinated by Citi, Barclays and Kvika while ABN AMRO in cooperation with ODDO BHF, Arctica Finance, Arctic Securities, Arion Banki, JPMorgan, Landsbankinn and UBS are acting as bookrunners. The Icelandic government had acquired 75% of the bank during the 2008 financial crisis, which roiled the country's banking sector and plunged the economy into recession. Its GDP now stands at $35 billion, according to the IMF, more than 60% higher than 2007. The government sold part of its Islandsbanki stake in 2022, but there were complaints that it was not sufficiently transparent. Kristofersson said he had seen significant interest in the share sale and that markets were positive towards Iceland despite global upheaval that often dents interest in smaller and emerging market economies. "Although we were perceived as relatively more riskier than the U.S. in past turmoil, this time around, we are viewed as relatively safe compared to the U.S. market," Kristofersson said. He added that U.S. tariffs would have minimal impact on Iceland – and its comparatively low 10% proposed level could even give it an advantage over neighbouring countries. Additionally, he said that while significant house price increases were worrisome for citizens, the market "doesn't look bubbly at all", and the government was working to build more affordable housing and use the tax system to disincentivise short-term tourism rentals.
