Reykjavík Energy Wraps Up Green Bond Auction
Reykjavík Energy has successfully wrapped up a green bond auction that featured the bond classes OR020934 GB, OR180255 GB, and a newly introduced bond class, OR280845 GB. This achievement highlights Reykjavík Energy's dedication to sustainability and its investment in eco-friendly projects.
Overview of Bond Classes
The OR020934 GB class offers fixed indexed interest with semi-annual payments and is set to mature on a specific date in September 2034. So far, bonds in this category have been issued with a total nominal value of ISK 27,607 million.
Performance Insights for OR020934 GB
This bond series attracted considerable interest from investors, receiving bids that totaled ISK 800 million nominal value, with competitive yields ranging from 4.41% to 4.54%. In the end, Reykjavík Energy accepted bids amounting to ISK 500 million at an average yield of 4.48%.
Introduction of New Green Bond Class OR280845 GB
During this auction, a new green bond class, OR280845 GB, was introduced. This bond also features fixed indexed interest and semi-annual payments, with a maturity date set for August 2045 and a fixed interest rate of 3.70%. Notably, this bond will be redeemable after a period of 13 years.
Investor Engagement with OR280845 GB
The OR280845 GB series saw strong investor interest, as evidenced by bids totaling ISK 2,250 million nominal value. The yields for this bond ranged between 3.72% and 4.08%. Ultimately, Reykjavík Energy accepted bids amounting to ISK 2,050 million at a yield of 4.05%.
Details on Class OR180255 GB
The OR180255 GB bond also features fixed indexed interest and semi-annual payments, with a final maturity date set for February 2055. Historically, this bond class has seen a nominal value of ISK 34,246 million issued.
Bid Results for OR180255 GB
In this auction, the OR180255 GB series attracted bids totaling ISK 1,290 million nominal value, with yields ranging from 3.52% to 3.60%. Reykjavík Energy accepted bids totaling ISK 1,000 million at a competitive yield of 3.54%.
Fossar Investment Bank's Contribution
Fossar Investment Bank played a vital role in the issuance and sale of these bonds, facilitating their successful admission to trading on the Nasdaq market in Iceland within the sustainable bonds sector. Their expertise was instrumental in achieving these favorable outcomes.
Contact Information
If you would like more information about the auction and the bonds, please reach out to:
Snorri Hafsteinn Þorkelsson, CFO, tel: +354 516 6100, email: snorri.hafsteinn.thorkelsson@or.is
Matei Manolescu, Fossar Investment Bank, phone: +354 522 4008, email: matei.manolescu@fossar.is
Frequently Asked Questions
What was the total nominal value of bids attracted by the bonds?
The bonds attracted a total nominal value of ISK 4,540 million across different classes during the auction.
What are the maturity dates for the different bond classes?
The OR020934 GB matures on September 2, 2034, OR180255 GB matures on February 18, 2055, and OR280845 GB matures on August 28, 2045.
What are the fixed interest rates offered by the newly introduced bond class?
The OR280845 GB carries a fixed interest rate of 3.70% with semi-annual payments.
Who managed the bond issuance and sales process?
The issuance and sale of the bonds were managed by Fossar Investment Bank, ensuring smooth operations and market integration.
How does this auction contribute to Reykjavík Energy's sustainability goals?
The successful auction and issuance of green bonds aid Reykjavík Energy's efforts to fund and promote sustainable energy projects, reflecting their commitment to environmental initiatives.
