Iceland bond plans highlight ‘remarkable’ post-crisis rebound
Iceland is returning to global bond markets for the first time in more than 18 months, marking another step in its recovery after the 2008 crisis. The Nordic island is aiming to raise €500m in a five-year euro-denominated bond, similar to a bond sale of December 2017. Proceeds will be used to buy back €352m of outstanding bonds. Running a budget surplus, Iceland has no immediate need for the remaining money raised. Instead, the government’s aim is to rebuild the nation’s profile with debt investors, said Bjarni Benediktsson, finance minister. He described as “remarkable” the country’s recovery from the crisis that saw the collapse of its three largest banks, the convictions of more than two dozen bankers and the introduction of capital controls. Iceland’s foreign-currency debt has a single-A credit rating from Standard & Poor’s and Fitch, recovering from troughs of triple-B minus in the years after the banking bust.
- Financial Times -