Rarik raises ISK 10 billion in inaugural green bond issuance
A total of 34 bids were received for the bond series, amounting to ISK 14.7 billion nominal value at a yield of 3.65-3.99%. Bids totalling ISK 10 billion were accepted at a yield of 3.77%, reflecting strong investor interest in the issuance. This is the largest bond offering of any company in Iceland for a number of years and the results reflect strong investor interest.
The proceeds will be allocated to finance or refinance projects that support the energy transition, the development and renewal of the electricity distribution network and other sustainable energy infrastructure in accordance with Rarik’s Green Financing Framework. The Framework has been certified by Moody’s Ratings and received the highest possible rating, SQS1 (Excellent).
Landsbankinn advised on the framework and acted as arranger and distributor of the bond issuance for RARIK. The Bank also worked on the Green Financing Framework. The Bank’s Corporate Finance and Capital Markets departments managed the offering and will also oversee the listing of the bond series on Nasdaq Iceland.
Elísabet Ýr Sveinsdóttir, CFO of RARIK:
"We are extremely pleased with the outcome of RARIK’s first green bond issuance and the positive reception it received. Our collaboration with Landsbankinn has been highly successful from start to finish. The bank guided us with great professionalism through the development of our Green Financing Framework and all aspects of the issuance preparation process. That work resulted in this excellent outcome, of which we are very proud.
For RARIK, this issuance marks an important milestone in aligning the company’s financing even more closely with the extensive projects ahead, including the continued expansion, renewal, and strengthening of the electricity distribution network. This is a key prerequisite for the energy transition and the development of sustainable energy infrastructure throughout Iceland."
Eyrún Anna Einarsdóttir, Managing Director of Asset Management & Capital Markets at Landsbankinn: “We are very pleased with the reception the offering received and the strong interest investors showed in Rarik’s first green bond issuance. The outcome confirms the market’s confidence in the company and in the important infrastructure projects that will be financed through the issuance. At Landsbankinn, we are very pleased and proud to have been involved in the company’s first green bond issuance, which was highly successful by every measure.”
Further information about Rarik’s Green Financing Framework and its sustainability initiatives are available on the company’s website.
