Landsvirkjun has prepaid a loan with a state guarantee of collection with a nominal amount of 34 million USD. The loan agreement was signed in 2011 in relation to a supply contract for the production and installation of mechanical and electrical equipment for the Budarhals hydropower station. It was an amortizing loan with equal principal payments and final maturity in 2032.
The prepayment reflects Landsvirkjun‘s strong financial position and is a part of reducing the company‘s debt and interest expenses. Due to this early payment, Landsvirkjun will incur a one off extraordinary cost of about 5.7 million USD in interest expenses in the second quarter of 2018.