The Nordic Investment Bank (NIB) has provided Landsnet with a 50 million USD (5.2 billion ISK), long-term loan to finance construction for Þeistareykir Line 1, Krafla Line 4 and to strengthen the transmission system in Skagafjörður and Snæfellsnes. The loan is for a period of ten years and has a fixed rate of interest.
The construction project in the north-east of Iceland is divided into two parts: A connection between Bakki and Þeistareykir with the construction of Þeistareykir Line 1 and a connection between Þeistareykir and Krafla with the construction of Krafla Line 4, as well as the construction of new substations at each location. The entire project was designed with the environment as a guiding principle, ensuring that structures and tracks blend into their surroundings as much as possible.
The loan includes financing for the laying of 66 kV underground cables which are intended to strengthen the transmission system in the area, while increasing the safety and stability of the regional electricity system.
Guðlaug Sigurðardóttir, CFO of Landsnet made the following statement:
"We are pleased with the confidence NIB has shown us with this loan. NIB carried out an environmental assessment of the construction projects for which the loans were granted and we are pleased to say that we met all the criteria put in place with regard to environmental issues. We place an emphasis on environmental and social issues in all our projects.”
NIB is an international financial institution owned by eight countries - Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances both public and private projects and has the highest possible credit rating (AAA / Aaa) from Standard & Poor's and Moody's.
For more information, please contact Guðlaug Sigurðardóttir, CFO at Landsnet