Landsvirkjun

A New EMTN programme for Debt Issuance

2. August 2013
Burfell Hydropwer Station, located in South Iceland

On July 26, 2013, Landsvirkjun signed a new EMTN (Euro Medium Term Note) programme without the guarantee of collection for debt issuance. The total size of the EMTN programme is one billion USD, equivalent to 120 billion ISK. The Company has a second EMTN programme amounting to 2.5 billion USD, equivalent to 300 billion ISK. That particular programme enjoys the guarantee of collection from the Republic of Iceland.

With the establishment of the programme Landsvirkjun now has two EMTN programmes for debt issuance. One programme enjoys the guarantee of collection but the other is without the guarantee of collection. No new notes have been issued under the new programme. The credit rating of the EMTN programme enjoying the guarantee of collection remains unchanged and the new EMTN programme has no effect on outstanding notes.

The credit rating agency Standard & Poor’s assigned a BB rating to the new EMTN programme without the guarantee of collection which is the same rating as the EMTN programme enjoying the guarantee of collection. Moody’s assigned a Ba2 rating to the new EMTN programme without the guarantee of collection which is two notches below the current rating of the EMTN programme enjoying the guarantee of collection.

The dealers under the EMTN programme are Barclays Capital, Citigroup, SEB, JP Morgan and UBS.

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