Reykjavík Energy's Green Bond Auction Overview
Recently, Reykjavík Energy concluded an impressive green bond auction, showcasing its commitment to sustainability and ecological responsibility. The auction featured three distinct green bond classes: OR031033 GB, OR280845 GB, and OR180255 GB. Together, these classes attracted substantial bids amounting to an impressive ISK 1,920 million in nominal value.
Details of the Bond Classes
Bond Class OR031033 GB
This bond class offers a fixed nominal interest rate of 8.30%, with equal installments paid every six months and a final maturity date set for October 3, 2033. Notably, prior issuances in this bond class have reached a total nominal value of ISK 8,990 million, and these bonds are actively traded on Nasdaq Iceland. The latest auction drew bids totaling ISK 920 million, with yields ranging from 8.15% to 8.34%. Ultimately, Reykjavík Energy accepted bids amounting to ISK 660 million, with a yield of 8.20%.
Bond Class OR280845 GB
Next is the OR280845 GB bond, which features fixed indexed interest payments with a 3.70% fixed interest rate. Similar to the previous bond class, it also pays equal payments every six months, but it has a longer final maturity date of August 28, 2045. Interestingly, this bond can be redeemed in the year 2037. The bond series attracted bids totaling ISK 600 million at yields ranging from 3.89% to 4.08%, and Reykjavík Energy accepted bids for the full ISK 600 million at the maximum yield of 4.08%.
Bond Class OR180255 GB
Finally, the OR180255 GB bond bears a fixed indexed interest rate of 2.60% with equal payments made every six months, set to mature by February 18, 2055. Previously, bonds issued in this class have reached a significant nominal value of ISK 38,521 million, underscoring its popularity among investors. The latest auction for this series attracted bids of ISK 400 million at yields between 3.78% and 3.81%, and Reykjavík Energy accepted the full ISK 400 million at a yield of 3.81%.
Role of Fossar Investment Bank
Fossar Investment Bank has played a pivotal role in overseeing the issuance and sale of these bonds. Their expertise ensures that the bonds are admitted to trading on the Nasdaq market in Iceland, particularly focusing on sustainable investment opportunities.
Contact Information
For more information regarding these bonds, please feel free to reach out to:
Snorri Hafsteinn Thorkelsson, CFO, reachable at +354 516 6100, or via email at snorri.hafsteinn.thorkelsson@orkuveitan.is.
Additionally, contact Matei Manolescu from Fossar Investment Bank at +354 522 4008, or through email at matei.manolescu@fossar.is.
Frequently Asked Questions
What is the total nominal value of the bonds auctioned?
The total nominal value of the bonds auctioned is ISK 1,920 million.
What is the maturity date for the OR031033 GB bond?
The OR031033 GB bond matures on October 3, 2033.
How often are interest payments made for these bonds?
Interest payments for these bonds are made every six months.
What is the yield accepted for the OR280845 GB bond class?
Reykjavík Energy accepted bids for the OR280845 GB bond class at a yield of 4.08%.
Who oversees the trading of these bonds?
Fossar Investment Bank is responsible for overseeing the issuance and trading of these bonds on the Nasdaq market in Iceland.
