Landsvirkjun, one of Europe’s leading renewable energy companies, signed a new loan agreement amounting to EUR 70 million (11.3 billion ISK) with the European Investment Bank (EIB) yesterday (March 23rd 2011). The loan is an important milestone in the overall funding of the Budarhals Hydro Electric Project in Iceland.
The loan has a Maturity Date in 2031 and a favourable margin over Euribor. Included in the loan agreement is a provision requiring a minimum credit rating for the Republic of Iceland.
Landsvirkjun signed a similar loan agreement with the Nordic Investment Bank (NIB) on March 16th, amounting to USD 70 million. The energy company is still working on completing the overall funding of the project and expects that will conclude shortly.
The CEO of Landsvirkjun, Hordur Arnarson, commented, “We are very pleased with this loan agreement from EIB. This means that we are one step closer in securing funding for the Budarhals Hydro Electric Project. The loan agreements from NIB and EIB reflect the confidence and trust which these banks have shown the Company.”
Further information about Landsvirkjun and the Budarhals Hydro Electric Project, visit www.landsvirkjun.com or for direct enquiries, contact Ragna Sara Jonsdottir, Head of Corporate Communications at sara@lv.is or alternatively +(354) 849 2122.