Kvika Bank issues covered bonds for the first time

Kvika Bank’s inaugural covered bond series, KVIKA CB 32, has been admitted to trading on the Nasdaq Iceland Main Market. The issuance is backed by the Bank’s residential mortgage portfolio and supports Kvika’s continued expansion in the residential mortgage market.

Kvika began offering residential mortgages under the Auður brand in summer 2025, an offering that has been very well received. The covered bond issuance introduces a new source of funding for the Bank, with Kvika also becoming the fourth covered bond issuer in the Icelandic market.

The inaugural offering attracted bids totalling ISK 10.12 billion, of which ISK 5.92 billion were accepted. The total size of the series is ISK 6.42 billion, including ISK 500 million retained for own use. The bonds carry an annual coupon of 7.74%.

Eiríkur Magnús Jensson, Chief Financial Officer of Kvika Bank:

“We are pleased with the response to our inaugural covered bond issuance. It diversifies the Bank’s funding sources and supports the continued growth of our residential mortgage business.”

The bonds are issued under Kvika’s covered bond programme, pursuant to a licence granted by the Financial Supervision of the Central Bank of Iceland. Further information on the issuance and the terms of the bonds is available in the investor relations section.