Orkuveita Reykjavíkur - Company Announcement

Agreement on a bond

Reykjavík, 2016-09-30 15:47 CEST (GLOBE NEWSWIRE) -- Orkuveita Reykjavíkur (OR;
Reykjavík Energy) and Magma Energy Sweden, the parent company of HS Orka, have
reached an agreement on changes to a bond, scheduled to mature in its entirety
in December 2016. The value of the bond is approximately USD 72 million. The
agreement stipulates a payment of one-half of the bond‘s outstanding principal
and issuance of a new bond to mature in H1 2018. The agreement is subject to
OR‘s Board‘s approval. Interests of the new bond will be 5%. 

These changes will be considered by the Central Bank of Iceland.