Alandsbanken calls its outstanding floating-rate covered bonds due 2022

By Rebecca Melvin

Concord, N.H., Sept. 1 – Alandsbanken Abp is calling all of its outstanding SEK 2.5 billion floating-rate covered bond due 2022 (ISIN: SE0010598474), according to a press release on Wednesday.

The redemption date will be Sept. 10, and the record date for the early redemption is Sept. 3.

Alandsbanken also announced that it has issued a new covered bond of up to SEK 5.5 billion. The call option was conditional on a new issue of at least SEK 3 billion in size.

Holders of the existing notes approved the addition of the call option pursuant to a consent solicitation for the floaters on Aug. 17.

The call was to be exercised in connection with the issuance of a new covered bond.

As of the consent bid early deadline at 6 a.m. ET on Aug. 27, the company gained approval from 100% of noteholders to redeem all, but not only some, of the outstanding notes prior to final maturity at a price of 100.9 plus accrued interest.

A consent fee of 0.3% of the principal amount of notes was to be paid to noteholders.

Nordea Bank Abp and Danske Bank A/S acted as joint lead managers and bookrunners for the new covered bond.

Nordea (nordealiabilitymanagement@nordea.com, +45 6161 2996) was acting as the tabulation agent and solicitation agent for the consent solicitation, which expired on Wednesday.

The lender operates in Finland and Sweden from its headquarters in Mariehamm, Aland Islands (Finland).

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