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Landsvirkjun Successfully Issues Green Bonds in the U.S. Market

Written by Customer Service on . Posted in Public Companies.

Landsvirkjun has today successfully issued green bonds in the U.S. private placement market, totalling USD 150 million. The original issuance target was USD 125 million, but strong investor interest led to the offering being upsized and closed at USD 150 million.

The bonds mature in 6 and 8 years and were issued in three tranches. Two tranches carry fixed interest rates of 5.17% and 5.37%, respectively, corresponding to a spread of 115–125 basis points over U.S. Treasury bonds. The third tranche carries a floating interest rate, indexed to SOFR with a spread of 144 basis points. The issuance is covenant-free, reflecting investor confidence in Landsvirkjun’s financial position.

Barclays Capital Inc. and ING Financial Markets LLC acted as joint placement agents. The issuance is classified as green, reflecting Landsvirkjun’s strong commitment to sustainability-linked financing.

Funding New Power Projects

The proceeds will be used to finance Landsvirkjun’s power projects, including the Vaðalda Wind Farm and the Hvammur Hydropower Station. Vaðalda will be the country’s first wind power plant, comprising 28 wind turbines. The first 14 turbines are expected to be commissioned in the fall of 2026, with full operations projected by the end of 2027. Hvammur Hydropower Station will become the eighth hydroelectric power plant in the Þjórsá and Tungnaá region.

Green Financing Framework

The bonds are issued under Landsvirkjun’s Green Financing Framework, which underscores the company’s commitment to sustainability and climate-related goals. This framework ensures that proceeds are used exclusively for assets or projects with positive environmental and climate impacts.

For further information please contact Rafnar Larusson, CFO 
Phone nr. +354 515 9000 or by email: rafnar@lv.is

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