Iceland's Landsbankinn to refinance 200b kronur in debt

Reykjavik

ICELAND'S Landsbankinn is planning this year to begin refinancing as much as 200 billion kronur (S$2.2 billion) of debt issued to its failed predecessor Landsbanki Islands (LBI), both helping the country lift its capital restrictions and reducing its cost of financing.

An upgrade in the bank's credit rating "has led to interest rates becoming, it seems, more favourable than what we have in our debts towards LBI", Steinthor Palsson, Landsbankinn's chief executive officer, said on Sept 4. "It may be mutually beneficial for us to head to the market, finance the approximate 200 billion kronur in debt."