Landsvirkjun has signed a new $150 million multi-currency revolving credit facility without a guarantee of collection.
The revolving credit facility will be used for general corporate purposes and provides Landsvirkjun with access to funds which can be drawn and repaid as needed. The facility has a three-year tenor with two one-year extension options, and refinances Landsvirkjun’s existing $200 million facility signed in 2015 and due to mature in December 2020. The size of the new facility has been reduced, reflecting less need for liquidity and improvements in underlying financials.
The new facility follows the successful placing of a $200 million green bond in the U.S. private placement market in 2018 and reiterates
The margin of the new facility is linked to a sustainability incentive structure which is triggered based on Landsvirkjun’s ability to meet certain sustainability KPIs. The KPIs reflect Landsvirkjun’s focus on the SDGs and social responsibility, specifically relating to the environment, gender equality and health and safety. Performance against the KPIs is assessed annually and confirmed by third party opinion providers.
The new facility is provided by Landsvirkjun’s core relationship banks and was led by Barclays Bank and SEB as co-ordinators, bookrunners and mandated lead arrangers. ING Belgium joined the facility as a bookrunner and mandated lead arranger, and Arion Bank and BNP Paribas joined the as mandated lead arrangers.
Barclays Bank PLC acted as documentation agent, and SEB as facility agent and sustainability coordinator.
Landsvirkjun generates about 75% of all electricity used in Iceland from 100% renewable energy sources, hydro, geothermal and wind.
