Morrison & Foerster advised Landsvirkjun, Iceland’s largest electricity generator, in connection with its agreement with U.S. and UK institutional investors to issue $80 million senior unsecured notes in the U.S. Private Placement (USPP) market. The issue links the pricing of the notes to the company’s carbon sequestration targets, in line with the UN’s Sustainable Development Goal (SDG) 13 on climate action. The notes have a three-year maturity and carry a fixed interest rate of 2.51%, with semi-annual payments.
Landsvirkjun is the first issuer of an SDG-linked USPP in Europe. As part of the transaction, Landsvirkjun has committed to increase its carbon sequestration efforts to reach at least 32,538 tons of CO2 eq. for 2020.
The MoFo team advising Landsvirkjun on the issuance was led out of London by Brian Bates, Jacob Mendoza, and Katherine Petray.
Read more about the issuance in Landsvirkjun’s press release.