Anticipated Bond Auction by Reykjavík Energy
Reykjavík Energy (Orkuveita Reykjavíkur) is gearing up for a significant bond auction. Scheduled for a Thursday, the auction will feature three distinct green bond classes, namely OR031033 GB, OR280845 GB, and OR180255 GB. This event highlights the company's commitment to sustainable financing and innovative investment opportunities.
Details of the Green Bonds Offered
OR031033 GB Bond
The OR031033 GB bond is set at a fixed nominal interest rate of 8.30%. Investors can expect equal payments every six months, culminating in a final maturity date of October 3, 2033. The bond class has witnessed an impressive issuance of ISK 8,990 million, successfully admitted to trading on Nasdaq Iceland, making it a lucrative option for potential buyers.
OR280845 GB Bond
This bond class features a fixed indexed interest rate and offers equal payments semi-annually, achieving full maturity by August 28, 2045. Notably, it carries a 3.70% fixed interest rate and is redeemable starting in 2037. This bond showcases a prior issuance of ISK 8,000 million in the same class, also on Nasdaq Iceland, reflecting confidence among investors.
OR180255 GB Bond
The OR180255 GB bond also features fixed indexed interest with similar semi-annual payment structure, maturing on February 18, 2055. Carrying a fixed interest rate of 2.60%, this bond has previously raised ISK 38,521 million in its class, indicating strong market participation and interest.
Facilitating the Bond Auction
Overseeing the issuance and sales process is Fossar Investment Bank hf. They are responsible for ensuring a smooth transaction and enabling these bonds' admission to the Nasdaq sustainable bonds market in Iceland. Their established expertise in managing such financial instruments provides confidence to investors participating in the auction.
How to Participate in the Auction
Those interested in investing in these bonds must submit their bids via email to utbod@fossar.is. It's important to note that bids should reach the bank before UTC 17:00 on the auction day. The scheduled settlement for these transactions will take place on the following Thursday, June 26, 2025.
Contact Information for Inquiries
For further inquiries, potential investors may reach out to:
Snorri Hafsteinn Þorkelsson, CFO, by phone at +354 516 6100, or through email at snorri.hafsteinn.þorkelsson@or.is.
Matei Manolescu from Fossar Investment Bank is also available at +354 522 4008 or via email at matei.manolescu@fossar.is.
Frequently Asked Questions
What is the purpose of the bond auction?
The bond auction by Reykjavík Energy is aimed at raising funds through green bonds to support sustainable initiatives.
How can I submit my bid?
Bids should be submitted via email to utbod@fossar.is before the deadline.
What are the maturity dates for the offered bonds?
The bonds have varying maturity dates ranging from 2033 to 2055.
Who oversees the bond issuance?
Fossar Investment Bank hf. manages the issuance and trading of the bonds.
What are the interest rates for these bonds?
The bonds offer fixed interest rates ranging from 2.60% to 8.30% depending on the bond class.
