Green Bond Fact Sheet

Landsvirkjun

Date: 09-Mar-2018

Issue date: 09-Mar-2018 Maturity date: 09-Mar-2028 Tenor: 10
Issuer Name

Landsvirkjun

Amount Issued

USD200m

Country of risk

Iceland

CBI Database

Included

Issuer Type1

Government-Backed

Bond TypePrivate Placement

Green Bond Framework

Link to GB Framework

Second party opinion

Sustainalytics

Certification Standard

Not certified

Assurance report

N/A

Certification Verifier

N/AGreen bond rating

N/A☒ Energy☒ Solar☒ Onshore wind
☒ Offshore wind
☒ Geothermal☒ Hydro☐ Tidal☐ Biofuels☐ Bioenergy☐ Waste to energy☐ District heating☐ Electricity grid

☐ Energy storage☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Buildings☐ Certified Buildings☐ HVAC systems☐ Energy performance☐ Water performance☐ Energy storage/meters☐ Other energy related☐ Industry: components☐ Adaptation & resilience☐ Transport☐ Electric vehicles☐ Low emission vehicles☐ Bus rapid transit☐ Passenger trains☐ Urban rail

☐ Freight rolling stock☐ Coach / public bus☐ Bicycle infrastructure☐ Energy performance☐ Transport logistics☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Water & wastewater☐ Water distribution☐ Water treatment☐ Wastewater treatment☐ Water storage☐ Storm water mgmt
☐ Desalinisation plants☐ Erosion control☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience☐ Waste management☐ Recycling☐ Waste prevention☐ Pollution control☐ Landfill, energy capture☐ Energy performance☐ Infrastructure☐ Industry: components☐ Adaptation & resilience

Use of Proceeds☐ Land use &agriculture☐ Afforestation/parks☐ FSC Forestry☐ FSC Cellulose & paper☐ Land remediation☐ Energy/water efficiency☐ Sustainable agriculture☐ Adaptation & resilience☐ Other☐ Adaptation &resilience☐ ICT☐ Industry: process

Issue details
Reporting

Annual reporting on proceed allocation will be available on the company’s website.

Company information

Landsvirkjun is the largest electricity generator in Iceland, processing 75% of thecountry’s electricity. Three fourths of the company’s generation come from hydro andgeothermal power plants.

Firsts, records andcertifications

Landsvirkjun’s private placement is the first green bond from an Icelandic issuer!

Proceeds description

Climate Bonds view

Underwriters

The proceeds will fund the development of the 900MW Theistareykir geothermal
station and the 100MW expansion of the Burfell hydropower plant.
More broadly, the green bond framework lists geothermal, hydropower and wind as
eligible assets. Geothermal energy projects must comply with a direct emissions upper
limit of 100g CO2/kWh. Hydropower projects must have a capacity of up to 100MWand annual emissions of less than 4g CO2/kWh to be eligible. The deal benefits from a
Sustainalytics Second Party Opinion.
We identified Landsvirkjun as a candidate for green bond issuance in our Nordic andBaltic Public Sector Green Bonds report earlier this year and are very pleased to see itcome to market. Both geothermal and hydro eligibility criteria reflect best practice inthe market, setting a high benchmark for future issuers.
Barclays, Citi

Deal comments
Credit Rating
Pricing summary

The orderbook totalled just above USD700m, a 7x oversubscription from the launchsize of USD100m.

Investors summary

1Issuer categories: ABS, development bank, financial corporate, government-backed entity, loan, local government, non-financial
corporate, sovereign