Green Bond Offering Results

27. aug 2019

Heiðmörk

Orkuveita Reykjavikur (OR; Reykjavik Energy) concluded its green bond offering on August 27th 2019. The new green bond series has a maturity of 15 years, pays a fixed real-interest rate and will be listed on the Nasdaq Iceland Sustainable Bond market. The series has a semiannual annuity amortization schedule and a final maturity on September 2nd 2034.

The issue attracted bids amounting to ISK 3,730m  at a yield of 1.64%-1.90%. OR accepted bids amounting to ISK 2,040m at a yield of 1.79%.

The bond proceeds will be used to finance an array of green projects within OR, whose ambitious goal is to reduce carbon emissions by 60% by 2030. Projects to be funded include:

  • The CarbFix project at Hellisheiðarvirkjun, whereby CO2 is captured and stored as rock in the subsurface
  • Technologies that support smart grid applications
  • Renewable energy, energy distribution and expansion of the district heating system

In relation to the bond offering, OR has established a Green Bond Framework – Reykjavik Energy Green Bond Framework. The Green Bond Framework conforms to the “Green Bond Principles”, guidelines put forward by ICMA, the International Capital Market Association. CICERO Green has issued an independent review of the framework and has rated it with the highest possible rating of “dark green” for positive environmental effects of the projects and a rating of „excellent“ for the governance structure of the framework.

Fossar Markets managed the process on behalf of OR.