Exciting Green Bond Auction by Reykjavík Energy Today
Exciting Green Bond Auction by Reykjavík Energy Today
Reykjavík Energy, also known as Orkuveita Reykjavíkur, is set to hold an intriguing bond auction, offering investors a unique opportunity to participate in sustainable financing. This auction features several green bond classes, namely OR031033 GB, OR280845 GB, and OR180255 GB, all aimed at aligning financial growth with eco-conscious initiatives.
Details of the Green Bonds
The bond OR031033 GB presents an appealing fixed nominal interest rate of 8.30%. This bond allows investors to receive equal payments every six months, with a maturity date set for October 3, 2033. Notably, this bond class has previously seen a significant issuance of ISK 9,950 million, which has been warmly welcomed by the trading community on Nasdaq Iceland.
Understanding OR280845 GB
For those interested in indexed investments, the OR280845 GB bond offers a fixed indexed interest rate, ensuring payments are made biannually. This particular bond will mature on August 28, 2045, and it also provides redemption options in 2037 at a fixed interest rate of 3.70%. The prior market response to this bond has been optimistic, with ISK 9,000 million previously issued and listed for trading.
Long-Term Investment: OR180255 GB
The OR180255 GB bond represents a long-term commitment, bearing fixed indexed interest with scheduled payments every six months. This bond matures on February 18, 2055. It has also proven to be a considerable player in the market, having previously reached a nominal value of ISK 39,421 million in issuances on Nasdaq Iceland. Investors might find this option particularly attractive for those looking to invest in sustainable projects.
Bid Acceptance Policy
In order to maintain the integrity of the auction process, it’s important to note that no bids below ISK 20,000,000 will be entertained for each bond series. Furthermore, the auction is streamlined, as it is exempt from publishing a prospectus as outlined in the EU regulations, thus providing a more efficient process. This makes the bonds accessible while adhering to the mandated protocols for securities.
The Role of Fossar Investment Bank
Fossar Investment Bank hf. plays a crucial role in the successful execution of this auction, overseeing the issuance of the bonds and their subsequent admission to trading on the Nasdaq sustainable bonds market in Iceland. Their expertise adds a layer of credibility to the process, ensuring that all offerings are managed with professionalism.
How to Participate in the Auction
Bidders interested in participating must ensure that their submissions are sent to the email address utbod@fossar.is before UTC 17:00 on the day of the auction. Successful transactions will be settled on a subsequent date, notably October 15, 2025. This two-stage process provides a structured timeline for all participants.
Contact Information for Queries
For those seeking additional information or clarification, several contacts are available to assist potential bidders. Snorri Hafsteinn Þorkelsson, CFO, can be reached at +354 516 6100 or via email at snorri.hafsteinn.þorkelsson@or.is. Additionally, Matei Manolescu from Fossar Investment Bank is available at +354 522 4008, accessible through email at matei.manolescu@fossar.is.
Frequently Asked Questions
What bonds are being auctioned by Reykjavík Energy?
The auction features OR031033 GB, OR280845 GB, and OR180255 GB bonds.
What is the interest rate on OR031033 GB?
OR031033 GB bears a fixed nominal interest rate of 8.30%.
How often do the bonds pay interest?
All bonds offer biannual payments to investors.
Can bids below ISK 20,000,000 be accepted?
No, bids must be at least ISK 20,000,000 for each bond series.
Who oversees the auction process?
Fossar Investment Bank hf. oversees the issuance and sale of the bonds.
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