Geothermal utility Reykjavik Energy successfully concludes green bond offering

Hellisheidi geothermal power plant (source: ThinkGeoEnergy, creative commons)
Alexander Richter 18 Feb 2019

Icelandic geothermal energy utility Reykjavik Energy successfully concludes its first green bond offering to finance several green projects, among them the CarbFix project at the Hellisheidi geothermal power plant.

Icelandic geothermal energy utility Reykjavik Energy (Orkuveita Reykjavikur) has released the results of a recently held green bond offering.

It was the first green bond offering of the company. The new green bond series has a maturity of 36 years, pays a fixed real-interest rate and will be listed on the Nasdaq Iceland Sustainable Bond market. The series has a semiannual annuity amortisation schedule and a final maturity on 18 February 2055.

The issue attracted bids amounting to ISK 6,258m ($52.7 million)  at a yield of 2.50%-2.70%. OR accepted bids amounting to ISK 3,528m ($29.7 million) at a yield of 2.60%.

The bond proceeds will be used to finance an array of green projects within OR, whose ambitious goal is to reduce carbon emissions by 60% by 2030. Projects to be funded include:

  • The CarbFix project at the Hellisheidi geothermal power plant, whereby CO2 is captured and stored as rock in the subsurface
  • Technologies that support smart grid applications
  • Renewable energy, energy distribution and expansion of the district heating system

In relation to the bond offering, OR has established a Green Bond Framework – Reykjavik Energy Green Bond Framework. The Green Bond Framework conforms to the „Green Bond Principles“, guidelines put forward by ICMA, the International Capital Market Association. CICERO Green has issued an independent review of the framework and has rated it with the highest possible rating of „dark green“ for positive environmental affects of the projects and a rating of „excellent“ for the governance structure of the framework.

The process was managed by Icelandic firm Fossar Markets on behalf of OR.

Source:, OR.isOMX release