Iceland's Landsvirkjun gets loan for 90 MW of geothermal turbines

Geothermal power plant. Author: gamene. License: Creative Commons, Attribution 2.0 Generic

December 14 (SeeNews) - Iceland-based power producer Landsvirkjun said Friday it has obtained USD 68 million (EUR 62m) in Export Credit Agency (ECA) financing from Japan, which will be used for the purchase of two 45-MW geothermal turbines.

In particular, the credit facility will cover a supply contract with Japanese industrial equipment maker Fuji Electric Co Ltd (TYO:6504), according to the press release. The two units will be used for the Theistareykir geothermal power plant, which is scheduled to kick off operations in 2017.

The Japan Bank for International Cooperation (JBIC) provided an up to USD-34-million buyer's credit to Landsvirkjun at a fixed interest rate. The lead arranger Citibank Japan Ltd along with the Tokyo Branch of Bank of Yokohama and Commerzbank AG co-financed up to USD 34 million more at a floating rate, whilst Nippon Export and Investment Insurance (NEXI) provided insurance.

As Iceland's main power producer, the company operates hydropower, geothermal and wind power plants and generates about 3/4 of the country’s total electricity. The current deal marks both the first JBIC-NEXI buyer’s credit facility for a renewable energy project within High Income OECD Countries and the first ECA financing Iceland receives from Japan, Landsvirkjun noted.

(USD 1.0 = EUR 0.912)

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