Morrison Foerster (“MoFo”) has advised Landsvirkjun on its successful issuance of green bonds in the U.S. Private Placement market totalling US$220 million.
Landsvirkjun is the National Power Company of Iceland, generating electricity solely from 100% renewable sources including hydropower, geothermal and wind. It is Iceland’s biggest energy company, supplying over 70% of all electricity produced in Iceland to industries, services, and households.
The original target issuance was US$180 million, but following strong investor demand led to the offering being upsized and closed at US$220 million. Bonds were issued in two tranches with maturities of six and eight years. One tranche carries fixed interest rate of 5.33%, equivalent to a spread of 115 basis points over U.S. Treasury bonds, while the other carries a floating interest rate based on SOFR plus a spread of 169 basis points. The proceeds will be used to finance Landsvirkjun’s new power projects, including the Vaðalda Wind Farm.
The MoFo team was led by Corporate partner Scott Ashton and associate Amelia Cheng.
Read more in Landsvirkjun’s press release.
