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Landsvirkjun signs $125 million sustainability-linked revolver
By Marisa Wong
Los Angeles, June 22 – Landsvirkjun signed a $125 million revolving credit facility with a tenor of three years and two one-year extension options, according to a press release.
The terms of the facility are favorable, with an initial margin of 45 basis points over SOFR and with a sustainability pricing mechanism.
The margin is linked to the company’s climate and environment targets, namely to become carbon neutral by the end of 2025 and to stop purchasing fossil fuels by the end of 2030. The facility’s interest margin will increase or decrease by 2.5 bps based on the company’s success in reaching these targets.
The new facility was signed by four banks that form the company’s bank group. The transaction was led by Barclays Bank Ireland plc as financial advisor. Bookrunners and mandated lead arrangers were Barclays, ING Belgium SA/NV, BNP Paribas SA and Cooperative Rabobank UA. Barclays acted as documentation agent and sustainability coordinator. ING Belgium will act as agent.
The facility will be used as backup liquidity for general corporate purposes and refinances Landsvirkjun’s undrawn $150 million facility signed in 2019.
The company said the reduction in size of the facility reflects its strong financial position and the reduced need for access to backup liquidity.
The electricity generator and producer of renewable energy in Europe is based in Reykjavik, Iceland.
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