200 Million USD Loan for Landsvirkjun Power Company Skip to content

200 Million USD Loan for Landsvirkjun Power Company

Landsvirkjun, the power company, has taken a loan of USD 200 million (ISK 25 billion) on the international market. The company sells the majority of its electricity to industrial users such as aluminum smelters. This is the first such loan an Icelandic company has taken since October 2008. The loan is a revolving credit loan for three years with a possible two-year extension. According to the terms of the loan, Landsvirkjun can take out and pay back funds according to its needs.

straumsvik-smelter_ipa
Straumsvik aluminum smelter. Photo: IPA

By taking the loan Landsvirkjun has finished refinancing a similar loan that was to be paid by December 2012. The loan is a multibank loan arranged by Barclays Capital, Citigroup and SEB. Other participating banks include Arion Bank, JP Morgan, UBS, Landsbankinn and Íslandsbanki.

According to Landsvirkjun, the purpose of the loan is to ensure that Landsvirkjun has access to funds should other sources of financing temporarily dry up.

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