New issue observation · 5 May 2026
LANBNN EUR 300m 5Y green senior preferred: fair value ~MS+105 vs IPT MS+140-145
Landsbankinn launched a EUR 300m no-grow 5Y green senior preferred today at IPT of MS+140-145. Rated A- by S&P, the bond settles 12 May 2026 with annual fixed coupon. Cross-referencing the issuer's existing EUR curve and Icelandic peer trading levels (Islandsbanki, Arion), fair value sits around MS+105. The IPT therefore embeds roughly 35-40bp of new issue concession before any greenium adjustment, leaving meaningful room for tightening through guidance and final pricing.
Deal snapshot
| Issuer | Landsbankinn HF (LANBNN) | Format | Reg S, sr preferred, green |
|---|
| Size | EUR 300m WNG | Tenor | 5Y (12 May 2031) |
|---|
| Ratings | A- (S&P) | Coupon | Annual fixed, act/act |
|---|
| IPT | MS+140-145 | ISIN | XS3368835719 |
|---|
Step 1 — LANBNN's own EUR curve
| Maturity | Tenor | Mid YTM | Z-spread |
|---|
| May 2028 | 2.0Y | 3.55% | ~+66 |
| Oct 2029 | 3.4Y | 3.69% | ~+80 |
| Jun 2030 | 4.1Y | 3.87% | ~+97 |
| Mar 2032 | 6.4Y | 4.12% | ~+116 |
Interpolated 5Y fair value on the issuer's own curve: MS+105 to +108.
Step 2 — Islandsbanki (closest peer)
| Maturity | Tenor | Mid YTM | Z-spread |
|---|
| Mar 2028 | 1.9Y | 3.47% | ~+58 |
| Sep 2030 | 4.4Y | 3.81% | ~+91 |
| Nov 2032 | 6.5Y | 4.17% | ~+121 |
ISLBAN 5Y interpolated: MS+100 to +105.
Step 3 — Arion Banki (one notch lower)
| Maturity | Tenor | Mid YTM | Z-spread |
|---|
| Nov 2028 | 2.5Y | 3.42% | ~+54 |
| May 2030 | 4.1Y | 3.87% | ~+98 |
| Sep 2031 | 5.3Y | 3.99% | ~+108 |
ARION 5Y interpolated (and adjusted up 5-10bp for ratings differential): MS+95 to +105.
Triangulation
| Reference | 5Y fair value |
|---|
| LANBNN own curve | MS+105 to +108 |
| Islandsbanki read-across | MS+100 to +105 |
| Arion read-across (rating-adjusted) | MS+95 to +105 |
| Consensus fair value | MS+102 to +108 (~MS+105) |
IPT vs fair value
| Metric | Level |
|---|
| IPT | MS+140 to +145 |
| Estimated fair value | ~MS+105 |
| Implied NIC at IPT (pre-greenium) | ~35 to 40bp |
| Greenium adjustment (infrequent issuer) | ~1 to 2bp |
Expected execution path
| Stage | Indicative spread |
|---|
| IPT | MS+140 to +145 |
| Guidance | MS+118 to +123 |
| Final pricing | MS+112 to +118 |
| Implied final NIC | ~7 to 12bp |
| Expected size | EUR 300m (no-grow) |
Observation: the IPT is calibrated to leave room for meaningful compression. Books on small/infrequent Nordic A- benchmarks of this profile have typically tightened 20-25bp from IPT to reoffer in recent vintages, finishing with single-digit to low-teens NIC.
Important. This material is provided for informational and educational purposes only. It does not constitute investment, legal, tax, accounting or financial advice, nor a recommendation, offer or solicitation to buy, sell or hold any security. Spread and yield observations reflect indicative levels at a single point in time and may differ materially from actual executable prices. Fair-value estimates are observational only and subject to change without notice. Readers should consult their own advisers before acting on any information herein. Past pricing or relative-value behaviour is not indicative of future outcomes.
