Commentary & Deal Flow

Launched: 4yr: €150m @ MS+165bp - Orderbook above €500m (incl. €30m JLM - pre rec)
Book Update: Books > €400m (excl. JLMs)
IPTs: 4yr: MS+190a

• Issuer: Kvika banki hf. (Ticker: KVABNK)
• LEI: 254900WR3I1Z9NPC7D84
• Issuer Ratings: Baa2 (stable) (Moody’s)
• Expected Issue Ratings: Baa2 (Moody’s)
• Issue type: Unsubordinated and unsecured Senior Preferred Notes
• Form of the Notes: Reg S Bearer
• Size: €150m
• Use of Proceeds: General Corporate Purposes
• Pricing Date: 03-Jun-26
• Settlement Date: 10-Jun-26 (T+5)
• Maturity Date: 10-Jun-30
• Coupon: Fixed, Actual/Actual (ICMA), payable annually in arrear on 10 June in each year, commencing from and including 10-Jun-27 up to and including the Maturity Date
• Redemption upon MREL Disqualification Event or Tax Event: Subject to the provisions of Condition 6.13, the Notes may, save as provided in the Base Prospectus, be redeemed at the option of the Issuer, in whole, but not in part, at any time at par, on giving not less than 15 nor more than 60 days’ notice (which notice shall be irrevocable) to the Principal Paying Agent, and, in accordance with Condition 13, the Noteholders, if a Tax Event or a MREL Disqualification Event occurs
• Substitution or Variation: If at any time a MREL Disqualification Event or a Tax Event occurs, or to ensure the effectiveness or enforceability of Condition 17, subject to the provisions of Condition 6.13, the Issuer may, having given not less than 30 nor more than 60 days’ notice (which notice shall be irrevocable) to the Principal Paying Agent and, in accordance with Condition 13, the Noteholders, either substitute all, but not some only, of the Notes for, or vary the terms of the Notes (including changing the governing law of Condition 17 from English law to Icelandic law) so that they remain or, as appropriate, become Senior Preferred Qualifying Securities (as defined in the Base Prospectus), as the case may be
• Clean-up Redemption Option: Applicable. See Condition 6.6
• Clean-up Percentage: 75 per cent
• Clean-up Redemption Amount: €1,000 per Calculation Amount
• Clean-up Redemption Date: From Issue Date
• Listing: Euronext Dublin (Regulated Market)
• Events of Default: There are no events of default with respect to the Notes. Enforcement Events specified in Condition 9 apply
• Waiver of Set-Off: Applicable
• Clearing: Euroclear / Clearstream, Luxembourg
• Payment Business Days: T2
• Selling Restrictions: As per the Base Prospectus
• Specified Denominations: €100k+1k
• ISIN: XS3399022758
• Joint Bookrunners: Morgan Stanley (B&D), Barclays, J.P. Morgan
• Manufacturer Target Market: UK MiFIR / MiFID II professionals / ECPs-only / No EEA PRIIPs or UK PRIIPs KID / CCI product summary. Not available to retail in the EEA or the UK.
• Fees: The Banks will be paid a fee by the Issuer in respect of this transaction
• Governing Law: English Law, save for Condition 3 (Status of the Notes) which is governed by Icelandic law
• Statutory Loss Absorption: Each Noteholder acknowledges that the Notes may be subject to the exercise of Statutory Loss Absorption Powers by the Relevant Resolution Authority (Condition 17)
• Advertisement: The information presented herein is an advertisement and does not comprise a prospectus for the purposes of Regulation (EU) 2017/1129. The Base Prospectus is available at https://kvika.is/en/fjarfestaupplysingar/?category=funding&subCategory=0. The Final Terms, when published, will also be available at https://kvika.is/en/fjarfestaupplysingar/?category=funding&subCategory=1 and on the website of the Euronext Dublin at https://live.euronext.com/en/product/bonds-detail/28269/documents. Investors should not subscribe for any Notes referred to in the materials except on the basis of information in the Base Prospectus.
• Timing: Books to go subject at 12.15 UKT / 13.15 CET