Landsvirkjun, the National Power Company of Iceland, has received a Green Bond Pioneer Award at the 2019 Climate Bonds Annual Conference in London (link for more information).
The Green Bond Pioneer Awards are the premier annual recognition of achievement by organisations, financial institutions, governments and individuals who have demonstrated leadership through pioneering initiatives and green issuance and have provided positive examples of climate resilient and low carbon investment in a diverse range of nations and markets.
In March 2018, Landsvirkjun became the first Icelandic issuer of green bonds, by issuing a USD $200 million US private placement („USPP“) in green bond format. The proceeds raised have been fully allocated to two projects, the Theistareykir geothermal power station and Búrfellsstöð II power station (the expansion of Búrfell hydropower station). The USPP is understood to be one of the first green USPP issues.
As part of the transaction, Landsvirkjun set up a Green Bond Framework, based on criteria set out under the ICMA Green Bond Principles. Proceeds are used to finance or refinance existing and future projects that promote the sustainable, responsible and efficient use of renewable Icelandic natural resources to produce clean energy.
“Iceland is the land of renewable energy, with 100% of our energy generation coming from renewable sources. Having been the first Icelandic issuer of green bonds, we at Landsvirkjun are very honoured to receive this recognition for our efforts in promoting green energy as one of the most important ways to fight climate change. The successful issue confirms investors’ support and appetite for green financing and we are excited to be a part of a rapidly developing Green Bond market – a market which continues to grow, both in importance and size.”
“The 2019 Awards have a particular focus on emerging economies and small nations, in recognition that we all have a responsibility for climate action. Landsvirkjun has taken the leadership mantle in Iceland on green finance, opening a path for others to follow. The recognition as a Green Bond Pioneer is well deserved.”