Festi hf. issues new six-month bill amid ongoing financial struggles
Festi hf. has issued a new six-month bill, named FESTI260922, with a nominal value of ISK 1,020 million. The bond carries a fixed interest rate of 7.875% and is set to settle on 23 March 2026. The company has also published a base prospectus and a supplement for its broader issuance programme.
The issuance was managed by Íslandsbanki's securities sales division. The bills will be submitted for admission to trading on the Main Market of Nasdaq Iceland, though the offering itself was not open to the public. Under EU regulations, the transaction was exempt from the usual prospectus publication requirements.
The new bill arrives as Festi hf. faces ongoing financial difficulties. Its earlier bond, also named FESTI260922, was issued on 26 September 2022 at nearly 100% of par value. Since then, its market value has dropped sharply, trading at just 45-55% of par value as of 17 March 2026. This decline follows the company's restructuring proceedings in Iceland. For further details, Magnús Kr. Ingason, CFO of Festi hf., can be contacted at [email protected].
The new six-month bill is due to begin trading on Nasdaq Iceland after the settlement date of 23 March 2026. Its admission to the exchange will follow the submission of a formal application. The company's financial restructuring and the performance of its earlier bond remain key factors in its current market position.
