Exciting Green Bond Auction by Reykjavik Energy
Reykjavik Energy, also known as Orkuveita Reykjavíkur (OR), is gearing up for an important event in the financial landscape with its upcoming green bond auction. This auction is designated to take place on a Tuesday in late April 2025, showcasing a selection of environmentally focused bonds that are becoming increasingly attractive to investors.
Details of the Offered Bonds
The auction will feature three distinct classes of green bonds: OR031033 GB, OR280845 GB, and OR180255 GB. Each bond in this offering promises a secure investment opportunity backed by fixed interest rates designed to appeal to a diverse range of investors looking for sustainable options.
OR031033 GB
The OR031033 GB bond is particularly enticing, offering a fixed nominal interest rate of 8.30%. This bond ensures investors receive equal instalments every six months, with a final maturity date set for October 3, 2033. Previously, this bond class successfully issued a nominal value of ISK 8,145 million, which has been admitted to trading on Nasdaq Iceland, affirming its credibility and stability.
OR280845 GB
Meanwhile, the OR280845 GB bond class presents an appealing fixed indexed interest option. This bond carries a fixed interest rate of 3.70% and is structured to make equal payments every six months. It is set to mature on August 28, 2045, which allows investors to enjoy a long-term commitment. Notably, previous issues in this category totalled ISK 7,850 million, demonstrating strong investor confidence.
OR180255 GB
Lastly, the OR180255 GB bond further enhances the offering, featuring fixed indexed interest and also distributing equal payments biannually. This bond will reach its final maturity on February 18, 2055. Like its counterparts, it has a strong history, with ISK 38,216 million previously issued and admitted for trading on Nasdaq Iceland.
Role of Fossar Investment Bank
Fossar Investment Bank hf. plays a crucial role in this auction by overseeing the issuance and sale of these bonds. They ensure that the bonds are properly admitted to trading on the Nasdaq sustainable bonds market in Iceland, offering investors a reliable platform for green investments.
Bid Submission Details
For those interested in participating in this bond auction, bids must be submitted to the email address utbod@fossar.is before UTC 17:00 on the auction date. This is a valuable opportunity for investors to engage with green financing strategies and invest in sustainable future developments. Transactions related to the auction will settle shortly thereafter, on May 6, 2025.
Contact Information
For more details and inquiries, interested parties can reach out to SNorri Hafsteinn Thorkelsson, the CFO of Reykjavik Energy, at +354 516 6100. Alternatively, they can connect via email at snorri.hafsteinn.thorkelsson@orkuveitan.is. Furthermore, Matei Manolescu from Fossar Investment Bank can be contacted at +354 522 4008 or through his email at matei.manolescu@fossar.is.
Frequently Asked Questions
What is the purpose of the green bond auction?
The auction aims to offer investment opportunities in sustainable projects through various bond classes with fixed interest rates.
What bonds are being offered?
Three classes of bonds are being presented: OR031033 GB, OR280845 GB, and OR180255 GB, each with unique interest rates and maturity dates.
Who manages the bond auction?
Fossar Investment Bank hf. is overseeing the issuance, sale, and admission of these bonds on the Nasdaq sustainable bonds market.
When is the auction taking place?
The bond auction is scheduled for a Tuesday in late April 2025, with bids needing to be submitted before a specific deadline.
Who can I contact for more information?
For inquiries, contact Snorri Hafsteinn Thorkelsson at +354 516 6100 or Matei Manolescu at +354 522 4008 for assistance.
