Landsvirkjun - Company Announcement

Landsvirkjun and the European Investment Bank sign a new loan agreement

On March 23, 2011, Landsvirkjun signed a new loan agreement amounting to EUR 70
million (some 11.3 billion ISK) with the European Investment Bank (EIB). 

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. 

The loan is an important milestone in the overall funding of the Búðarháls
Hydro Electric Project. Landsvirkjun signed a similar loan agreement with the
Nordic Investment Bank on March 16 amounting to USD 70 million. The Company is
still working on completing the overall funding of the project and expects that
will conclude shortly. 

Hörður Arnarson, Landsvirkjun's CEO:

“We are very pleased with this loan agreement from EIB. This means that we are
one step closer in securing funding for the Búðarháls Hydro Electric Project.
The loan agreements from NIB and EIB reflect the confidence and trust which
these banks have shown the Company“. 



Further information is provided by Ragna Sara Jonsdottir, head of corporate
communications, sara@lv.is, +(354) 849 2122