22. nov 2021
Reykjavík Energy (Orkuveita Reykjavíkur; OR) has updated the framework for the OR Group’s green-bond issuance and now the framework covers the entire balance sheet of the Group, not just selected projects. The framework will also cover all financing within the Group. The framework has received independent second opinion as Dark Green.
Reykjavík Energy pioneered in issuing green bonds in Iceland in 2019 and it has proved to be particularly successful. The purpose was to provide the company with more favourable financing, with increasing number of investors demanding environmentally valuable and socially responsible investment opportunities. The initial framework provided for a special evaluation process where each funded project undergoes an assessment of its suitability for green financing.
In the current update, however, considering the nature of Reykjavík Energy’s and the subsidiaries’ operations, the Group's entire balance sheet is within the framework, not just individual investment projects within the Group. The framework will intend to allow issuance of more types of debt financing, not only limited to bonds but also commercial papers, and loans, to finance eligible assets.
For this to be possible, the Group as a whole and all activities within it must meet strict environmental requirements. In short, CICERO (Center for International Climate Research) gave the Green Financing framework its highest rating, Dark Green. Included in the overall shading is an assessment of the governance structure of the Green financing Framework Cicero finds the governance procedures in the framework to be Excellent.