Reykjavik Energy closes ISK-2.11bn green bond offering

Icelandic public utility Orkuveita Reykjavikur (OR), also known as Reykjavik Energy, has concluded a green bond offering on Thursday, raising ISK 2.11 billion (USD 17.7m/EUR 15.8m).

The offering was oversubscribed, attracting bids with a total value of ISK 3.33 billion at a yield of 2.20%-2.40%. This new green bond series matures on February 18, 2055 and pays a fixed real-interest rate. The bonds will be listed on the Nasdaq Iceland Sustainable Bond market.

Reykjavik Energy is allocating the proceeds for an array of green projects, including the so-called CarbFix project at Hellisheiaarvirkjun that aims to capture and store carbon dioxide (CO2) emissions. The funds will also be directed towards technologies that support smart grid applications, as well as renewable energy, energy distribution and district heating system expansion.

The company further noted it has established a green bond framework that received the highest possible rating of „dark green“ from CICERO Green.

OR’s goal is to cut carbon emissions by 60% by 2030.

(ISK 100 = USD 0.841/EUR 0.749)

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