Bakkavör Group issues additional ISK 2 billion bond

Bakkavör Group hf. has issued an additional ISK 2 billion nominal value in bond category BAKK 03 1. The bonds were sold in a private placement. BAKK 03 1 is a previously issued category of indexed bullet bonds maturing on 15 May 2009. The nominal value of the category before the increase was ISK 9.5 billion and is ISK 11.5 billion nominal value after the increase. The bonds are listed on the Iceland Stock Exchange.

The purpose of the private placement was to raise capital for the further development of activities on Bakkavör Group’s core markets and thereby encourage the profitable growth of the company.

Kaupthing Bank arranged the private placement and underwrote the issue.

For further information please contact:

Lýdur Gudmundsson, CEO of Bakkavör Group    

Tel:     00 44 7900 901 385.