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Landsbanki Íslands, Announcement   30.9.2005 16:27:49
Flokkur: Fyrirtækjafréttir      Íslenska  English

The Minister of Agriculture has today decided, after consultation with the Executive Committee on Privatisation, to accept the offer by Landsbanki Íslands for the specified assets and liabilities of the Agricultural Loan Fund (Lánasjóður Landbúnaðarins). Landsbanki’s offer of ISK 2.653 billion (bn) was the highest offer received.

The Agricultural Loan Fund has around 3000 clients, with a total of 10,000 loans totalling some ISK 14 bn. The Fund’s liquid assets amount to around ISK 3 bn. The terms of the offer provide for Landsbanki to take over debt instruments issued by the Agricultural Loan Fund amounting to ISK 13.75 bn.  

The signing of the purchase contract is scheduled for next week, with payment to be made upon delivery of the assets, conditional upon the approval of the Financial Supervisory Authority (FME) and the The Icelandic Competition Authority (Samkeppniseftirlit).

CEO Sigurjón Þ. Árnason:

The Agricultural Loan Fund has built up valuable business relationships with Icelandic farmers and provided them with significant financial services in connection with their investments and agricultural development throughout the country. Landsbanki will build on these connections and maintain the service provided by the Fund.”

CEO Halldór J. Kristjánsson:

“Landsbanki has the most extensive branch network of any Icelandic bank, enabling it to provide customers of the Agricultural Loan Fund with dependable service. The takeover reinforces the Bank's business ties with farmers, in accordance with its objective of providing comprehensive and solid financial service to all of Iceland.


Following this result, Landsbanki has decided to offer Þorfinnur Björnsson, the current director of the Agricultural Loan Fund, a position with the Bank to handle the Fund’s integration and strengthen its service to the Fund’s clients.


Landsbanki’s Corporate Finance handled the tender offer and provided advisory services for the transaction.

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