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.