Bulletin: Islandsbanki's Planned IPO Will Test Investor Appetite For Icelandic Banks

MADRID (S&P Global Ratings) Feb. 2, 2021--S&P Global Ratings said today that the planned IPO of Islandsbanki hf will test investors' appetite for Icelandic assets and, specifically, its banks. Although we consider that the impact of the pandemic might take some time to fully translate to the banking sector, the IPO approved by the Ministry of Finance on Jan. 29, 2021, might be finalized as early as June this year. The privatization comes as no surprise, given that it has been on the government's agenda since 2015. Following the successful listing of Arion Bank, one of the three largest banks in Iceland, in 2018, the government published a report on the future of the Icelandic financial system. In this report,

...February 2, 2021 MADRID (S&P Global Ratings) Feb. 2, 2021--S&P Global Ratings said today that the planned IPO of Islandsbanki hf will test investors' appetite for Icelandic assets and, specifically, its banks. Although we consider that the impact of the pandemic might take some time to fully translate to the banking sector, the IPO approved by the Ministry of Finance on Jan. 29, 2021, might be finalized as early as June this year. The privatization comes as no surprise, given that it has been on the government's agenda since 2015. Following the successful listing of Arion Bank, one of the three largest banks in Iceland, in 2018, the government published a report on the future of the Icelandic financial system. In this report, it detailed its plan to dispose of its interest in Islandsbanki, while retaining a qualified stake (34%) in Landsbankinn. The government's goal is to reduce risks, maximize return, and avoid potential competitive distortion in its banking sector. We understand that,...

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