Landsvirkjun Secures Green Bonds in U.S. Market for Growth

Author: Ryan Hughes Updated: 05-15-2025 12:15 PM

Landsvirkjun Achieves Milestone in Green Bond Issuance

Landsvirkjun has achieved a significant milestone by successfully issuing green bonds in the U.S. market. The total amount raised reached USD 150 million, surpassing the original target of USD 125 million, demonstrating strong demand from investors.

Details of the Bond Issuance

The new green bonds will mature in six and eight years and are subdivided into three tranches. Two of these tranches feature fixed interest rates of 5.17% and 5.37%, resulting in a spread of 115 to 125 basis points over U.S. Treasury bonds. Additionally, the third tranche is set with a floating interest rate indexed to SOFR, carrying a spread of 144 basis points. Notably, this issuance is covenant-free, reflecting robust investor confidence in the financial robustness of Landsvirkjun.

Role of Placement Agents

Barclays Capital Inc. and ING Financial Markets LLC served as joint placement agents for this bond issuance. The classification of these bonds as green highlights Landsvirkjun’s ongoing commitment to sustainable finance.

Financing for Renewable Projects

The proceeds from the bond issuance will support Landsvirkjun’s various power projects, most notably the Vaðalda Wind Farm and the Hvammur Hydropower Station. The Vaðalda project represents Iceland's first-ever wind power station, aiming to install a total of 28 wind turbines, with the first 14 expected to be operational by the fall of 2026. The entire wind farm is projected to be fully operational by late 2027. Meanwhile, the Hvammur Hydropower Station will stand as the eighth hydroelectric facility in the Þjórsá and Tungnaá region.

Commitment to Sustainable Financing

This bond issuance falls under Landsvirkjun’s Green Financing Framework, which reiterates the organization's dedication to achieving sustainability and environmental objectives. This framework guarantees that all proceeds are strictly allocated to assets or projects that deliver positive environmental impacts.

Contact Information

For more detailed inquiries regarding the bond issuance and ongoing projects, interested parties can reach out to Rafnar Larusson, CFO. Contact details include phone number +354 515 9000 or via email at rafnar@lv.is.

Frequently Asked Questions

What was the total amount of green bonds issued by Landsvirkjun?

Landsvirkjun successfully issued green bonds totaling USD 150 million in the U.S. market.

What projects will the funds from the bonds finance?

The funds will finance renewable energy projects, including the Vaðalda Wind Farm and the Hvammur Hydropower Station.

Who acted as the placement agents for this bond issuance?

Barclays Capital Inc. and ING Financial Markets LLC served as the joint placement agents for the bond issuance.

How are the bonds classified in terms of sustainability?

The bonds are classified as green due to their alignment with sustainability-linked financing practices.

What is the target operational date for the Vaðalda Wind Farm?

The first 14 turbines of the Vaðalda Wind Farm are expected to be commissioned in the fall of 2026, with full commercial operation projected by the end of 2027.

About The Author

Hello, my name is Ryan Hughes. I am a financial, economics, and stock market specialist committed to assisting people in negotiating the intricacies of the financial system. Having a great deal of experience and a thorough grasp of market dynamics and economic trends, my area of expertise is converting complex financial ideas into understandable, practical knowledge. By use of my articles and blog entries, I hope to give you the information and assurance you need to make wise financial choices.

I've had the honor of interacting with a wide range of readers as a writer for several financial blogs, from new investors to seasoned market participants. To enable you to reach your financial goals, I want to make finance, economics, and stock market trends understandable and approachable. I appreciate you traveling with me toward success and financial literacy.

Contact Ryan Hughes privately here. Or send an email with ATTN: Ryan Hughes as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.