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Landsvirkjun secures ECA financing from Japan for Theistareykir Geothermal Power Plant

December 11, 2015

Landsvirkjun has signed an ECA (Export Credit Agency) loan agreement in relation to a supply contract for two 45 MW geothermal turbines from Fuji Electric for the Theistareykir Geothermal Power Plant, scheduled to commence operation in 2017.

The Japan Bank for International Cooperation (JBIC) provided buyer's credit totaling up to USD 34 million (JBIC's portion) at a fixed interest rate. Citibank Japan Ltd. (lead arranger), Bank of Yokohama and Commerzbank AG, Tokyo Branch, co-financed up to USD 34 million at a floating rate, with Nippon Export and Investment Insurance (NEXI) providing insurance, bringing the total financing amount to up to USD 68 million.

JBIC/NEXI-backed financing has achieved a 20 year tenor without a guarantee of collection. This is the first JBIC-NEXI buyer’s credit facility for a renewable energy project within High Income OECD Countries.

The JBIC/NEXI-backed financing was supported by Takanawa Japan KK, as an Advisor, and Citigroup, as a Coordinator.

Hordur Arnarson, CEO:

“This is a milestone agreement for Iceland and Japan since this is the first ECA financing Iceland receives from Japan. We are very pleased with the support from the Japanese institutions to finance our first geothermal renewable energy project.“

Pictured above, seated, are, from left to right:

Takeshi Endo, Manager, Bank of Yokohama

Oi Mari, Executive Director, NEXI

Rafnar Larusson, CFO, Landsvirkjun

Hideo Naito, Managing Executive Officer, JBIC

Ravi Saxena, Executive Officer, Citibank Japan

Thomas Mueldner, General Manager, Commerzbank AG

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