By William Gullotti
Buffalo, N.Y., March 14 – Reykjavik Energy (OR, Orkuveita Reykjavikur) announced the sale of an additional ISK 60 million of non-index linked green bonds, series OR180242GB, due Feb. 18, 2042.
Under a Jan. 27 agreement with market makers Arion Banki hf, Islandsbanki hf, Landsbankinn hf and Kvika Banki hf, each market maker had the right to purchase a total of ISK 100 million of the green bonds. The bonds would be sold at the agreed price in the bond auction held on Feb. 24.
According to a Monday press release, the market makers exercised their right to purchase a total of ISK 60 million of the bonds at a yield of 5.39%. Settlement will be on March 18.
OR said it will additionally issue ISK 480 million of bonds in the series that will not be sold to investors. The purpose of this add-on is so the company can meet its bond lending obligations under a previous market making agreement.
With the latest add-ons, the total outstanding amount of the OR180242GB series will be ISK 6,237,500,000.
On Feb. 24, OR said it accepted bids for ISK 1.5 billion of the green bonds at a yield of 5.39%. According to the prior press release, the bonds attracted bids totaling ISK 3.56 billion at yields ranging from 5.35% to 5.7%. That tap issue brought the total amount of the series to roughly ISK 5.70 billion.
The green bond series is listed on the Nasdaq Iceland Sustainable Bond market.
The public utility is based in Reykjavik, Iceland.
| Issuer: | Reykjavik Energy
|
| Issue: | Green bonds, series OR180242GB, add-on
|
| Amount: | ISK 60 million
|
| Maturity: | Feb. 18, 2042
|
| Yield: | 5.39%
|
| Market makers: | Arion Banki hf, Islandsbanki hf, Landsbankinn hf and Kvika Banki hf
|
| Settlement date: | March 18
|
| Total issue size: | ISK 6,237,500,000
|
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