Overview of Reykjavík Energy's Green Bond Auction
Reykjavík Energy, known as Orkuveita Reykjavíkur, is set to conduct an exciting bond auction soon. This auction highlights its commitment to sustainability with a variety of green bonds available for potential investors. The release of bonds is a significant step not only for the company but also for promoting environmental initiatives within the financial market.
Details of Bonds Offered
During the auction, several green bond classes will be offered, each designed to appeal to different investor preferences. The bonds being presented include:
Class OR031033 GB
The OR031033 GB bond comes with a fixed nominal interest rate of 8.30%. Investors can expect equal repayments every six months, making it attractive for those looking for stable income. This bond will mature on October 3rd, 2033, and the company has previously issued bonds worth ISK 6,390 million in this class.
Class OR280845 GB
The OR280845 GB bond features fixed indexed interest with a competitive rate of 3.70%. Similar to the OR031033 GB, it also offers equal payments twice a year. Set to mature on August 28th, 2045, this bond provides a redemption option in 2037. This class has previously seen bonds issued at a nominal value of ISK 4,770 million.
Class OR180255 GB
Finally, the OR180255 GB bond presents a compelling investment opportunity with fixed indexed interest, also paying out in equal installments every six months. This bond is set to mature on February 18th, 2055, and has already seen several issuances totaling ISK 36,966 million.
Issuance and Trading Oversight
Fossar Investment Bank hf. is tasked with overseeing the entire process of issuing these bonds. They will manage both the sale and the subsequent admission to trading on the Nasdaq sustainable bonds market in Iceland. This partnership ensures a professional handling of the auction and reinforces investor confidence.
Investment Submission and Key Dates
Interested investors should note that bids must be submitted to the email address utbod@fossar.is no later than 17:00 UTC on the day of the auction. It’s crucial to be mindful of this deadline to ensure participation. Transactions stemming from this auction are expected to be settled shortly after, on February 5th, 2025.
Contact Information for Inquiries
For any questions or further information regarding the auction, potential investors may reach out to:
Snorri Hafsteinn Þorkelsson
CFO of Reykjavík Energy can be contacted at +354 516 6100 or via email at snorri.hafsteinn.þorkelsson@or.is.
Matei Manolescu
An official at Fossar Investment Bank, available at +354 522 4008, can be reached through email at matei.manolescu@fossar.is.
Frequently Asked Questions
What types of bonds will Reykjavík Energy offer?
They will offer classes OR031033 GB, OR280845 GB, and OR180255 GB during the auction.
When is the bond auction taking place?
The bond auction is scheduled for January 29th, 2025.
How often do the bonds pay interest?
All offered bonds pay interest in equal installments every six months.
What is the maturity period for the bonds?
The maturity dates vary: October 3rd, 2033, August 28th, 2045, and February 18th, 2055.
Who manages the bond issuance?
Fossar Investment Bank hf. oversees the issuance and trading of these bonds.
