Iceland’s state-owned Landsbankinn has been granted a licence to issue mortgage covered bonds by the country’s Financial Supervisory Authority.

The licence for issuance of up to Ikr10bn (Eu66m) was granted on 29 April under Iceland’s Act 11/2008 on covered bonds.

An official at the issuer told The CBR that Landsbankinn’s first issue on the domestic market will probably be launched in the next two weeks

The official said the bank does not exclude the possibility of international issuance.

Landsbankinn is the entity that was created by Iceland’s Financial Supervisory Authority (FME) to take over the operations of Landsbanki Íslands following its collapse in October 2008 during the country’s financial crisis.