direct/ Glitnir (IS) - -Update on Glitnir Bank Funding and Liquidity -Glitnir Bank has liquid assets to cover all refinancing needs for 2007

Update on Glitnir Bank Funding and Liquidity -Glitnir Bank has liquid assets to cover all refinancing needs for 2007

Reykjavik, 24 August 2006 - This year Glitnir Bank has issued bonds and loans amounting to approximately EUR 3 billion. The long-term foreign debt of Glitnir Bank (parent company) maturing in 2007 amounts to EUR 2.7 billion. Due to its strong liquidity position the bank has been buying back selected issues maturing next year. As a result, all debt maturing in 2007 is covered by liquid assets.

In July the Bank issued a $450 million private placement in the United States, and in that month, and in August, the Bank issued an additional EUR 700 million in private placements in the US, Europe and Asia. The terms for these recent issues, with maturities ranging from 5 to 10 years, have been in the range of 65-80 bp over Libor with an observably improving trend after the Bank published its strong Q2 results in early August. The Bank´s last 5 year transaction was issued at an all-in cost of 65 bps over Libor.

Glitnir Bank has consistently emphasised the reinforcing of its liquidity position this year as well as the task of securing funds to meet next year´s maturing liabilities. This work, which has been executed well in advance, has been very successful in turbulent market conditions.

The Bank´s policy is to have immediate liquidity (cash and cash equivalents) to meet all maturing liabilities, short-term and long-term, over at least a six month period. Furthermore, the Bank´s internal rules state that when assets that can easily be securitised or sold are added to immediate liquidity, all debt maturing throughout the next twelve months must be covered. Currently immediate liquidity is approximately EUR 2.5 billion and the six month coverage ratio is 111%. The twelve month coverage ratio is 130%.

Tómas Kristjánsson, Chief Financial Officer of Glitnir:

"Following Glitnir´s presentation of the Q2 results we have observed that investor´s interest is increasing substantially. It is clear that the terms at which the Bank is issuing are very appealing to investors, especially those who know Glitnir well. We have always strongly emphasised educating the market on our strong results, strategy and asset quality and risk management and we are reaping the benefits from that continuous effort. The Bank will continue to manage its debt actively and the fact that we are buying back selected issues maturing next year clearly shows our opinion of the prices in the market. The task ahead is to continue our progress in all areas, building on the competitive strength of the Bank. We will take advantage of our strong liquidity position for further growth and to service our clients with fast, smart and thorough banking."

Glitnir Bank´s credit ratings

Long Term Short Term
Moody`s A1 P-1
Fitch A F1
S& P A- A-2

Press contacts:

Bjarni Ármannsson, CEO, Glitnir, mobile: +354-844 4002, e-mail: bjarni.armannsson@glitnir.is

Tómas Kristjánsson. CFO, Glitnir, mobile: +354-844-4656, e-mail: tomas.kristjansson@glitnir.is

Bjørn Richard Johansen, International Communication and Public Affairs Director, Glitnir, e-mail: brj@glitnir.no, mobile +47-47 800 100

About Glitnir
Glitnir is a leading financial group that offers universal banking. Services include retail, corporate and investment banking, stock trade and capital management. Glitnir is the sole owner of banks in Luxembourg (Glitnir Bank Luxembourg S.A) and Norway (BNbank and Glitnir bank, Glitnir Securities and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring, as well as 50.1 percent of Union Gruppen). Glitnir´s subsidiary BNbank in Norway recently entered into an agreement to acquire 45 per cent of the shares in Norsk Privatøkonomi ASA. Norsk Privatøkonomi ASA is an independent financial advisory company with 12 branches in key areas of Norway (governmental approval pending in Norway). Glitnir own the leading Swedish brokerage firm Fischer Partners. The bank has a branch in London and in Copenhagen, Denmark. Glitnir has an office in Halifax, Canada. Glitnir plans to open an office in Shanghai, China in 2006. Glitnir is listed on the Icelandic Stock Exchange. Glitnir recently announced record profits, with a return on equity of 45.5 percent for the first half year of 2006 - making second quarter 2006 the best ever in the bank´s history.

For further information, go to www.glitnirbank.com

http://www.glitnir.is

Glitnir




The announcement distributed by directnews.
The issuer is solely responsible for the content of this announcement.

This release was published on openPR.