Funding

Emphasis on Secure Access to Capital and Sustainability

Landsvirkjun places importance on secure and diverse access to capital.

The company has accessed capital markets with issuance of bonds, loans and through project financing. In order to secure liquidity, Landsvirkjun has access to a revolving credit facility provided by relationship banks.

Since 2018, financing has been green or sustainability linked. Landsvirkjun was the first company in Iceland to issue green bonds, and one of the first issuers of green bonds on the US Private Placement (USPP) market.

The importance placed on green and sustainable financing supports Landsvirkjun’s policy and vision of a sustainable world, powered by renewable energy.

Green financing is traditional financing but must be used to finance assets or projects which impact the environment and climate issues in a positive way. Green bonds give investors a green channel for their investments. Landsvirkjun’s green financing is used to finance or refinance assets which support sustainable, responsible, and effective use of natural resources in Iceland to generate renewable energy.

Sustainable financing provides incentive to achieve ambitious and defined objectives in the field of sustainability. Landsvirkjun’s sustainable financing is tied to performance indicators in equal rights, climate change, and safety issues, and it reflects the importance Landsvirkjun puts on UN’s SDGs and sustainability. The financial incentive to achieve the SDGs that the company has set for itself is in place, as if the SDGs are not reached, the interest rate on the loans goes up.

Landsvirkjun has credit ratings assigned by Moody’s and S&P Global Ratings.

Credit ratings
Moody'sS&P Global Ratings
Long termBaa1BBB+
Short term(P)P-2A-2
OutlookStableStable
Last updated12/11/201903/06/2021

Reports from rating agencies