Landsvirkjun Successfully Issues USD 220 Million Green Bonds

Landsvirkjun today successfully issued green bonds in the U.S. Private Placement market totaling USD 220 million.

The original target issuance was USD 180 million, but strong investor demand led to the offering being upsized and closed at USD 220 million. Demand for the issuance exceeded four times the amount offered, reflecting investors’ strong confidence in Landsvirkjun and the company’s financial position.

The bonds were issued in two tranches with maturities of six and eight years. One tranche carries fixed interest rate of 5.33%, equivalent to a spread of 115 basis points over U.S. Treasury bonds, while the other carries a floating interest rate based on SOFR plus a spread of 169 basis points.

The issuance is green and falls under Landsvirkjun’s Green finance framework, which reflects the company’s commitment to sustainability and climate related objectives.

BNP Paribas and Rabobank acted as joint placement agents for the issuance.

The proceeds will be used to finance Landsvirkjun’s new power projects, including Vaðalda Wind Farm.

Vaðalda will be Iceland’s first wind farm and consist of 28 wind turbines with a total installed capacity of 120 MW. Construction has already begun, with the first 14 turbines expected to become operational this fall and the remaining turbines a year later, bringing the wind farm into full operation before the end of 2027.

Constructions at Vaðalda Wind Farm