The bond was sold at a yield of 4.3 per cent, with annual interest payments and one principal payment at maturity. The dealer for the transaction is Arctica Finance hf.
Alongside the bond issue, Landsvirkjun has reached an agreement with the Landsbanki resolution committee to terminate an outstanding currency hedging transaction for USD 3.2 million. This position has been accounted for in the company's financial accounts from 2007.
The proceeds will be used for general refinancing purposes and prefunding of constructions in Northeast Iceland, that are expected to begin next year.