Today, Landsvirkjun finalized agreements on amending three outstanding bonds. In all cases the euro denominated bonds were amended and converted into US dollar bonds. Two of the bonds were issued in 2003 with maturity dates in 2018 and one bond was issued in 2004 with maturity date in 2019. The total amount was 75 million euros but after the conversion the amount is 103 million US dollars.
These agreements are an important step in reducing foreign exchange risk in the Company’s loan portfolio. Landsvirkjun´s benefit from these amendments is that financial risk is reduced due to possible movements in the euro against the US Dollar, which is the functional currency of the Company. After the conversion the portion of euro denominated debt is reduced from 29% to 25% and hence the US dollar portion is increased from 54% to 58% as of December 31st 2013 debt composition.