Successful Green Bond Auction by Reykjavík Energy Averts Climate Crisis
Reykjavík Energy’s Green Bond Auction Overview
Recently, Reykjavík Energy, also known as Orkuveita Reykjavíkur, concluded an impressive green bond auction, showcasing its commitment to sustainability and climate initiatives. The auction involved the green bond classes OR280845 GB, OR180255 GB, and a new entry, OR031033 GB. The total bids for these bonds culminated in an extraordinary amount, highlighting the interest from investors in environmentally friendly projects.
Key Details of the Auction
During this auction, the bonds collectively attracted bids amounting to ISK 7,110 million in nominal value. The newly introduced OR031033 GB features an attractive fixed nominal interest rate of 8.30%. Investors can look forward to regular equal installments paid biannually, with the final maturity set for October 3, 2033. This structure appeals to those seeking steady returns within a defined time frame.
Performance of OR031033 GB
The OR031033 GB class saw significant interest, with total bids reaching ISK 4.850 million at yields ranging between 8.23% and 8.48%. Ultimately, Reykjavík Energy accepted bids totaling ISK 4.630 million at a yield of 8.44%, reflecting a strong demand for this particular bond class.
Details on OR280845 GB and OR180255 GB
The OR280845 GB, with a maturity date set for August 28, 2045, features fixed indexed interest and equal payments every six months. Its interest rate is set at 3.70%, allowing for partial redemption after 13 years. Prior issuance of this bond class totaled ISK 2,050 million, indicating a solid track record of investor confidence.
Yield Results for OR280845 GB
In this auction, bids for the OR280845 GB class totaled ISK 1,740 million at yields between 3.85% and 4.00%. Ultimately, Reykjavík Energy accepted ISK 1,380 million worth of bids at a yield of 3.96%, ensuring a secure and beneficial investment for the participants.
Understanding OR180255 GB
The OR180255 GB class is designed similarly, featuring a final maturity date of February 18, 2055. With a robust prior issuance of ISK 35,246 million, this bond class continues to reflect Reykjavík Energy's ongoing commitment to green financing.
Bid Results for OR180255 GB
This auction saw bids for OR180255 GB totaling ISK 520 million, held at yields between 3.37% and 3.47%. Reykjavík Energy accepted the entire amount at a yield of 3.47%, further demonstrating investor support for their eco-friendly projects.
Role of Fossar Investment Bank
Fossar Investment Bank plays a crucial role in the bond issuance process, overseeing the sale and its inclusion in trading within the Nasdaq market in Iceland. Their focus on sustainable bonds aligns perfectly with Reykjavík Energy’s mission of promoting environmentally responsible investments.
Company Contacts
For more information about the auction results or for inquiries related to Reykjavík Energy's offerings, interested parties can reach out to:
Snorri Hafsteinn Þorkelsson, CFO, phone: +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 is the purpose of the green bond auction by Reykjavík Energy?
The auction aims to raise funds for sustainable projects and promote environmentally friendly initiatives.
What was the total amount raised in the recent auction?
A total of ISK 7,110 million in nominal value was raised through the auction.
What are the maturity dates for the bonds involved?
The bonds involved have varying maturity dates, with OR031033 GB maturing on October 3, 2033, and OR180255 GB on February 18, 2055.
Who is managing the bond issuance?
Fossar Investment Bank oversees the issuance and trading of the bonds.
How can investors participate in future bond auctions?
Investors can contact Reykjavík Energy or Fossar Investment Bank for details on participation in future green bond auctions.
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