Kaupthing Bank has concluded a series of bond private placements totalling $1,675 million to investors in the US and Europe.
Kaupthing has also finalised a bilateral loan of 195 million with a European bank. In comparison the Parent Company has only about 1.1 billion of long-term redemptions for the remainder of the year and FIH has 1.8 billion.
The terms of the aforementioned funding are considerably below the bank’s current CDS levels in the market and have a maturity ranging from 1 to 7.5 years.
This new funding of 1.3 billion adds to the strong liquidity position, which is further supported by the fact that Kaupthing Singer & Friedlander will be exiting its Asset Finance and Commodity Trade Finance businesses in the UK, which is expected to free up liquidity in excess of EUR 1.3 billion in 2008.
Further funding this year will be aimed at financing the modest growth of the Bank and pre-funding the year 2009.