Reykjavík Energy Concludes Successful Green Bond Auction
Recently, Reykjavík Energy capped off a successful auction of green bonds, demonstrating significant interest from investors. The auction took place with the green bond classes OR031033 GB, OR280845 GB, and OR180255 GB, collectively attracting total bids that amounted to ISK 1,700 million. This shows a healthy appetite for sustainable investments, reflecting the growing trend towards eco-friendly financing.
Details of the Bond Classes
The OR031033 GB bond class features an impressive 8.30% fixed nominal interest rate. Payments are made bi-annually, ensuring steady returns for investors, with a final maturity date set for October 3, 2033. Since its inception, bonds amounting to ISK 9,650 million had already been issued in this category and were admitted to trading on Nasdaq Iceland, solidifying their presence in the orderly market.
Yield and Acceptance
This particular series generated bids reaching a total of ISK 600 million nominal value, with yields fluctuating between 8.17% and 8.35%. Ultimately, OR accepted bids totaling ISK 300 million at a competitive yield of 8.17%, showcasing the bond’s attractiveness to investors.
Overview of OR0280845 GB
Another interesting addition to the auction was the OR0280845 GB bond. This offering carries a fixed indexed interest of 3.70% and similar to others, it also pays in equal installments every six months. This bond is special as it is redeemable in the year 2037 and has a final maturity date of August 28, 2045. To date, bonds with a nominal value of ISK 8,600 million have been successfully issued and welcomed into trading on Nasdaq Iceland.
Crowd Response
The auction for OR0280845 GB saw a total of ISK 400 million in bids at a yield of 4.05%. The high interest led to the acceptance of bids totaling ISK 400 million, fully utilizing the bidding potential in this category and reflecting investor confidence.
Insights on OR0180255 GB
Last but not least, the OR0180255 GB bond class features a lower fixed indexed interest rate of 2.60%. Similar to the other classes, it makes bi-annual payments, culminating in a final maturity date of February 18, 2055. This category has previously issued bonds with a substantial nominal value of ISK 38,921 million, underlining the bond's established credibility among investors.
Market Demand
In this auction, OR0180255 GB attracted bids totaling ISK 700 million with yields ranging from 3.90% to 3.99%. Ultimately, OR accepted bids of ISK 500 million at a yield of 3.95%, indicating a favorable market environment for bonds with lower interest rates and prolonged maturity periods.
The Role of Fossar Investment Bank
The successful issuance and trading of these bonds were overseen by Fossar Investment Bank. They facilitated the entire process from issuance to securing their inclusion on the Nasdaq market in Iceland, ensuring a smooth and efficient transaction process for all parties involved. Their expertise in sustainable bonds has proved invaluable in today's eco-conscious investment landscape.
Company Contacts
For any inquiries regarding the results or future bond offerings, interested parties can contact:
Snorri Hafsteinn Thorkelsson, CFO, tel: +354 516 6100, email: snorri.hafsteinn.thorkelsson@orkuveitan.is
Matei Manolescu of Fossar Investment Bank, tel: +354 522 4008, email: matei.manolescu@fossar.is
Frequently Asked Questions
What was the total nominal value of the bids in the auction?
The total nominal value of the bids in the auction amounted to ISK 1,700 million.
Who oversaw the bond issuance?
The bond issuance was overseen by Fossar Investment Bank.
What interest rate does the OR031033 GB bond class offer?
The OR031033 GB bond class offers a fixed nominal interest rate of 8.30%.
What is the final maturity date for the OR0280845 GB bond class?
The OR0280845 GB bond class has a final maturity date of August 28, 2045.
How much was accepted from the bids for OR0180255 GB?
For the OR0180255 GB bond class, bids totaling ISK 500 million at a yield of 3.95% were accepted.
