Reykjavik Energy board approves up to ISK 30 billion of bonds, loans

By Sarah Lizee

Olympia, Wash., April 14 – Reykjavik Energy’s board of directors approved on April 8 financing in the form of bonds, bills or bank loans from ISK 13 billion to up to ISK 30 billion, according to a press release.

The company said the reasons for the increased financing need are increased investments and dividend payments and generally worse economic conditions overall.

In addition, a part of the increase will be allocated to refinancing loans from Reykjavik Energy’s owners.

The company said it has a cash position of over ISK 21 billion in addition to access to credit lines of ISK 7 billion through 2020.

Reykjavik Energy noted that its total financing need for this year is not known at this stage and will be determined by both internal and external factors.

About half of this year’s financing is anticipated to be in the form of bank loans from domestic and international banks, with the remainder in the form of domestic bond issuance, based on market conditions, the company said.

With about ISK 5 billion worth of bonds already issued by the company in 2020, any bond issuance for the remainder of the year is anticipated to be about ISK 10 billion, given that market conditions will be favorable.

The energy and utility company is based in Reykjavik, Iceland.

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