Fossar manages successful Green Bond auction for City of Reykjavík
Fossar Markets managed a Green Bond auction for the City of Reykjavik on March 6th, 2019.
Total demand for the Green Bond series, RVKG 48 1, amounted to 3,320m ISK nominal at a yield in the range of 2.19% – 2.35%.
Offers amounting to 2,820m ISK nominal were accepted at a yield of 2.30%. Prior to the auction, the total outstanding nominal amount in the series, RVKG 48 1, was 4,100m ISK. Nominal outstanding amount post auction is 6,920m ISK.
Fossar Markets acted as the sole bookrunner and Green Bond advisor in the transaction.
This is the second successful Green Bond auction conducted by Fossar Markets for the City of Reykjavík, confirming the growing interest of Icelandic investors in socially responsible investment products. The purpose of the auction is to finance green investment projects in accordance with Reykjavik City’s Green Bond framework. These include pedestrian and cycle pathways, introduction of LED lights for street lighting and electric vehicle charging stations.
The framework conforms to the “Green Bond Principles” guidelines put forward by ICMA, the International Capital Market Association. CICERO, the Center for International Climate Research, rated the framework “Dark Green”, the highest possible rating given.
Fossar Markets would like to congratulate Reykjavík City on a very successful transaction.
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