The Icelandic power company Landsvirkjun has prepaid a loan with a state guarantee of collection with a nominal amount of 34 million USD. The loan agreement was signed in 2011 in relation to a supply contract for the production and installation of mechanical and electrical equipment for the Budarhals hydropower station. It was an amortizing loan with equal principal payments and final maturity in 2032.
The prepayment reflects Landsvirkjun‘s strong financial position and is a part of reducing the company‘s debt and interest expenses. Due to this early payment, Landsvirkjun will incur a one off extraordinary cost of about 5.7 million USD in interest expenses in the second quarter of 2018.
Landsvirkjun
Landsvirkjun is owned by the Icelandic state. The company generates around 70% of all electricity used in Iceland with 100% renewable energy sources, hydro, geothermal and wind. The company operates seventeen power stations; fourteen hydropower stations, three geothermal power stations and two wind turbines.
Reykjavik, Iceland, 15 June 2018
For further information please contact Rafnar Larusson, CFO at +354 515 9000 or by email: rafnar.larusson@landsvirkjun.is