Green Bond Auction by Reykjavík Energy
In a significant move towards sustainability, Reykjavík Energy, also known as Orkuveita Reykjavíkur, successfully held a green bond auction that attracted substantial investor interest. The green bonds, classified as OR031033 GB, OR280845 GB, and OR180255 GB, cumulatively drew total bids amounting to ISK 1,815 million nominal value.
Highlights of the OR031033 GB Bond
The OR031033 GB bond features a fixed nominal interest rate of 8.30% and involves equal payments made biannually. It is set to mature on October 3rd, 2033. This particular class has previously seen the issuance of bonds worth ISK 9,950 million, all actively traded on Nasdaq Iceland. The recent auction generated interest with bids totaling ISK 1,315 million at yields between 8.00% and 8.05%. Ultimately, Reykjavík Energy accepted bids for ISK 1,315 million at a yield of 8.05%.
Details on the OR0280845 GB Bond
The OR0280845 GB bond offers fixed indexed interest, providing stability in financial management. Bondholders will receive equal payments every six months, with the final maturity date set for August 28th, 2045. This bond carries a 3.70% fixed interest rate and has a redemption option available in 2037. Previously, bonds valued at ISK 9,000 million have also been issued in this class and are part of the Nasdaq Iceland listings. For this auction, the bond attracted bids totaling ISK 150 million, and bids were accepted at a yield of 3.99%.
Understanding the OR0180255 GB Bond
The OR0180255 GB bond presents an inviting prospect for investors as it possesses a fixed indexed interest rate of 2.60%. It also offers biannual equal payments and is scheduled to mature on February 18th, 2055. With a history of ISK 39,421 million in bonds already issued in this series, it showcases a robust market presence. The latest auction attracted bids of ISK 350 million at yields ranging from 3.89% to 3.92%, leading to accepted bids of ISK 350 million at a yield of 3.92%.
Role of Fossar Investment Bank
In facilitating these transactions, Fossar Investment Bank plays a critical role by overseeing the issuance, sale, and admission of the bonds to trading on the Nasdaq market in Iceland. This collaboration highlights Reykjavík Energy's commitment to sustainable finance, as they align with environmental, social, and governance (ESG) guidelines while expanding their funding capabilities.
Contact Information
For further inquiries regarding these green bonds, interested parties can contact:
Snorri Hafsteinn Thorkelsson, CFO, at +354 516 6100 or email at snorri.hafsteinn.thorkelsson@orkuveitan.is.
Matei Manolescu from Fossar Investment Bank can be reached at +354 522 4008 or via email at matei.manolescu@fossar.is.
Frequently Asked Questions
What bonds were included in the recent auction by Reykjavík Energy?
The recent auction included the OR031033 GB, OR280845 GB, and OR0180255 GB bonds.
What was the total nominal value of bids in the auction?
Total bids amounted to ISK 1,815 million nominal value across the bonds issued.
Who manages the issuance and sale of Reykjavík Energy's bonds?
Fossar Investment Bank oversees the issuance and sale of these bonds, ensuring they meet market standards.
What is the maturity date for the OR031033 GB bond?
The OR031033 GB bond matures on October 3rd, 2033.
How does fixed indexed interest benefit bondholders?
Fixed indexed interest offers a predictable financial return, improving investment stability and cash flow management for bondholders.
