Orkuveita Reykjavikur to auction inflation-linked green bonds Feb. 13

By Angela McDaniels

Tacoma, Wash., Feb. 5 – Orkuveita Reykjavikur will conduct an auction of new inflation-linked 36-year green bonds on Feb. 13, according to a company news release.

Fossar Markets will manage the auction process and will handle investor relations.

The auction will be structured as a single-price auction, which means that all accepted bids will be sold to investors at the same price. The lowest accepted price (highest yield) will determine the selling price.

The company reserves the right to accept all of the submitted bids, accept part of them or reject all of them. The total amount of accepted bids will be announced after the auction.

The bonds will pay a fixed interest rate and will be listed on the Nasdaq Iceland Sustainable Bond market.

The bonds will have a semiannual annuity amortization schedule and a final maturity date of Feb. 18, 2055.

The proceeds will be used to finance green projects such as renewable energy, energy distribution and expansion of the district heating system; sustainable water and wastewater management; carbon capture projects and technologies that support smart grid applications.

The company has established a green bond framework that conforms to the green bond principles guidelines put forth 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 given it the highest possible rating, dark green, for positive environmental effects and a rating of excellent for the governance structure of the framework.

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

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