Iceland’s Arion sold a €300m (ISK41.9bn) three year senior unsecured bond on Tuesday, its second public euro-denominated issue, attracting mainly real money accounts and confirming the ability of Icelandic banks to access international markets at lower costs, according to the bank’s CEO.

Arion Bank on Tuesday sold the first public euro transaction from an Icelandic bank since the collapse of the country’s financial industry in 2008, a Eu300m (Ikr44.9bn) three year deal that Arion’s head of funding said met with encouraging real money demand.

An Icelandic government-appointed committee has called for the establishment of specialised mortgage companies to finance mortgage lending via covered bonds, among other changes aimed at reforming the country’s housing system, according to Standard & Poor’s.

Arion Bank, the successor to Kaupthing Bank, is poised to become the first Icelandic bank to tap the euro senior unsecured market since the collapse of the country’s banks in the financial crisis, a move that the issuer’s CFO said the market is ready for.

The adoption of elements of Denmark’s mortgage finance system is being explored by a taskforce that will next month present a report to the Icelandic government on possible changes to the country’s mortgage finance model.