Green financing by NIB
21. jun 2021
Orkuveitan
The Nordic Investment Bank (NIB) has confirmed that the Reykjavík Energy’s projects financed by the bank last year meet its strict requirements for environmentally friendly projects. A formal documentation of this has now been received.
Reykjavík Energy’s other financing in recent months has exclusively been through the issuance of green bonds, which are listed on the Nasdaq-Iceland market. Demand has been considerable and RE’s management believes that they contribute to better terms compared to traditional bond issuance.
Most investment projects undertaken by the companies in the RE Group are considered green, but in order to receive external recognition, the environmental impact of the projects must be clear and documented. The projects at ON Power’s power plants in Nesjavellir and Hellisheidi, which were financed with the loan from NIB, had to receive excellent or good in the bank's mandate rating so that the bank itself could finance the loan by issuing green bonds, NIB Environmental Bonds.
