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Iceland's Landsvirkjun bags USD-150m sustainability-linked revolver

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

July 16 (Renewables Now) - Icelandic state-owned power company Landsvirkjun has secured a USD-150-million (EUR 133.3m) revolving credit line to support its general corporate needs and refinance existing debt, it said on Thursday. 

With a three-year term, two one-year extension options and without a guarantee, the credit facility was provided by a group of lenders led by Barclays Bank PLC and SEB. Its margin is linked to a sustainability incentive structure that fits Landsvirkjun’s focus on clean energy and climate action, the company said.

The new credit line refinances the company’s USD-200-million facility maturing in 2020. Landsvirkjun noted the new debt is smaller in size in view of its reduced need for liquidity and improvements in underlying financials.

Other participants in the financing agreement include ING Belgium SA/NV, Arion Bank hf and BNP Paribas.

Also as part of its sustainability-linked financing initiatives, Landsvirkjun last year raised USD 200 million by selling green bonds on the US private placement market and used them for the construction of the 90-MW Theistareykir geothermal power station and the Burfell II hydropower plant (HPP) in Iceland.

(USD 1.0 = EUR 0.888)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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