Financing with a focus on sustainability and positive climate impact
Landsvirkjun has established a Green Finance Framework in line with the company’s focus on sustainability and climate action.
Why green financing?
Proceeds from Green Finance instruments issued under the framework are used to finance or refinance existing and future assets that promote the sustainable, responsible and efficient use of Icelandic natural resources to produce renewable energy. Eligible assets comprise all items on the balance sheet supporting Landsvirkjun’s renewable energy generation activities. These include the generation assets themselves, but also capitalised development costs, intangible assets such as water and geothermal rights, as well as projects under construction.
Green financing provides investors the opportunity to direct their funds to green initiatives, i.e. to support projects that have a positive environmental and climate impact. Landsvirkjun became the first Icelandic issuer of Green Bonds in March 2018 when the company issued a USD 200 million US private placement („USPP“) in Green Bond format. Landsvirkjun announced its second Green Bond issuance in September 2020 when the company issued USD 150 million in the USPP market in Green Bond format.