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OR Extends Risk Management

Early January 2012, Orkuveita Reykjavikur (OR) successfully completed an extensive rates and commodity hedging programme with Dutch bank ING.

The agreement is a part of the implementation of OR’s recently adopted risk policy. A considerable portion of OR’s revenues are connected to the price of aluminum. Thus, fluctuations in commodity markets as well as financial markets affect both OR’s cash flow and equity. OR’s aim is to stabilize the impact of those externalities.

ING is one of Europe’s largest banks with about 107,000 employees worldwide. It prides itself in responsible corporate governance and responsibility. With respect to OR's renewable energy generation  the bank intends to cover the agreement in its Sustainability Newsletter, pointing out thatIceland has a unique position since virtually all its electricity is generated from renewable sources and that Iceland ranked number one in the 2010 Environmental Performance Index (EPI) by Yale University.