By Angela McDaniels
Tacoma, Wash., June 13 – Orkuveita Reykjavikur accepted bids for ISK 1.86 billion of additional 36-year inflation-linked green bonds at a yield of 2.06% in an auction on Wednesday, according to a company news release.
Auction participants submitted bids for ISK 3.7 billion of bonds at yields from 1.98% to 2.24%.
Previously, ISK 5.64 billion of bonds have been issued in the series. Following settlement of the add-on, the issue size will be ISK 7.5 billion.
The bonds pay a fixed real interest rate and will be listed on the Nasdaq Iceland Sustainable Bond market.
The series has a semiannual annuity amortization schedule and a final maturity on Feb. 18, 2055.
Fossar Markets managed the auction process.
Proceeds will be used to finance green projects including the CarbFix project at Hellisheiđarvirkjun, whereby CO2 is captured and stored as rock in the subsurface; technologies that support smart grid applications; and renewable energy, energy distribution and expansion of the district heating system.
Orkuveita Reykjavikur said it established a green bond framework that conforms to the green bond principles guidelines put forward by the International Capital Market Association.
According to the news release, the Center for International Climate Research has issued an independent review of the framework and has rated it with the highest possible rating of “dark green” for positive environmental effects of the projects and a rating of “excellent” for the governance structure of the framework.
The energy and utility company is based in Reykjavik, Iceland.
| Issuer: | Orkuveita Reykjavikur
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| Issue: | Inflation-linked green bonds
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| Amount: | ISK 1.86 billion add-on
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| Maturity: | Feb. 18, 2055
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| Yield: | 2.06%
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| Manager: | Fossar Markets
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| Pricing date: | June 12
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| Total issue size: | ISK 7.5 billion
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