Landsvirkjun

Landsvirkjun buys back outstanding bond

April 24, 2018

The Icelandic power company Landsvirkjun has agreed to buy back in full a bond of a nominal amount of 50 million euros, equivalent to about 61 million USD. The bond has a state guarantee of collection, the maturity date is 19 March 2020 and it carries a fixed interest rate of 5.6%. The buyback reflects Landsvirkjun‘s strong financial position and is a part of reducing the company‘s debt, interest expenses and foreign exchange risk. Due to this early redemption, Landsvirkjun will incur a one off extraordinary cost of about 5.6 million euros, equivalent to about 6.9 million USD, in interest expenses in the second quarter of 2018.

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