ISK 5bn bond issue for Landsnet
Saga Capital has completed the sale of bonds for Landsnet for a total of ISK 5bn. The bonds were in great demand, and were sold to Icelandic pension funds on the domestic stock exchange.
The initial value of bonds on offer was ISK 3bn, but the positive response of investors led to the increase of the issue. Saga Capital's Capital Markets administered the issue and sale of the bonds and will also see to their registration on Nasdaq OMX in Iceland. The 25-year bonds are index linked.
Landsnet handles the transmission of all electricity in Iceland, manages the nation’s electricity systems and controls the expansion of the distribution system. This bond issue will primarily
help Landsnet raise funds for construction of the Southwest Transmission Line, which involves refurbishing and extending the electricity supply system from Hellisheidi to Reykjanes. This project is
related to the future development of energy-intensive industries in the region. In addition, an extensive range of reparative actions will be taken to restore the landscape in sensitive areas such as
in Heiðmörk, an outdoor recreation area, from which transmission lines will be removed.