Reykjavik Energy has established a Green Bond Framework which is a platform for OR‘s green bond issuance. Operating an environmentally and socially sustainable business constitute the basis of OR´s long-term strategy. The establishment of the Green Bond Framework confirms OR´s committment to put a greater emphasis on sustainable financing by mobilising debt for environmental efforts.
The proceeds from the Green Bonds will be utilised to finance or refinance eligible projects that have environmental benefits. Eligible projects include, for example, renewable energy, energy distribution and management and sustainable water and wastewater management.
The Green Bond Framework is in line with the Green Bond Principles (GBP) issued by the International Capital Market Association (ICMA). The GBP have four core components:
- Use of Proceeds
- Process for Project Evaluation and Selection
- Management of Proceeds
OR has acquired a second opinion of its Green Bond Framework from CICERO, Center for International Climate Research. Based on CICERO´S review, OR´s Green Bond Framework is rated Dark Green, the governance structure in the framework is excellent and the overall framework is in alignment with the four pillars of the Green Bond Principles.