Kaldalón hf. Strengthens Financial Position with Successful Bill Issuance

In a strategic move to bolster its financial standing, Icelandic knitwear company Kaldalón hf. has successfully completed the sale of unsecured six-month bills in series KALD 25 1201. The auction attracted significant interest, with offers totaling ISK 1,060 million. The bills, which carry flat interest rates ranging from 8.30% to 8.55% per annum, were sold at an interest rate of 8.39% for a nominal value of ISK 920 million. The payment and settlement date is set for Monday, 2 June 2025. Landsbankinn hf. managed the sale, and an application for the bills to be admitted to trading on the Nasdaq Iceland Main Market is underway, with the first trading day to be announced shortly.

This financial maneuver aligns with Kaldalón’s broader strategy of leveraging operational revenues for growth and debt reduction. As noted by CEO Jón Þór Gunnarsson, the company has been disciplined in using its operational cash flow for investments, which has resulted in increased revenues and a stronger financial position. Despite challenges posed by rising interest rates, which have impacted asset valuations, Kaldalón’s proactive approach to financial management is paying dividends.

In addition to traditional investments, Kaldalón is expanding its focus to include investments in infrastructure, a sector that has seen growing interest. This diversification reflects the company’s forward-looking strategy and commitment to sustainable growth. As Kaldalón continues to innovate in the fashion industry with its unique blend of traditional Icelandic wool patterns and modern design, its financial strategies are equally poised to support long-term success.

For further details on the bill issuance, Sigurbjörg Ólafsdóttir, CFO of Kaldalón hf., can be contacted at sigurbjorg.olafsdottir@kaldalon.is . Gunnar S. Tryggvason from Landsbankinn hf. is also available for inquiries at gunnars@landsbankinn.is .