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| Theistareykir geothermal power plant (Courtesy Landsvirkjun) |
Landsvirkjun has reached an agreement with US and UK institutional investors to issue its debut US private placement (“USPP”) in Green Bond format, for a total amount of USD $200 million which is equivalent to about ISK 20bn. The bond which closed today has been issued without a guarantee of collection and is in relation to build-up of the Theistareykir geothermal power plant and the Burfell II hydropower station. As before, Landsvirkjun expects net debt of the company to decrease in 2018.
Landsvirkjun is the first issuer in Iceland to issue a bond in Green Bond format. The bond is understood to be one of the first Green USPP’s for a power company and one of the first Green USPP’s more broadly, in what is expected to be a growing sub sector of the market going forward.