Landsvirkjun - Company Announcement

Landsvirkjun issues bonds for USD 100 million

Landsvirkjun today signed an agreement for a bond issue of USD 100 million. The
bonds are for a term of five years and carry 6.5% fixed interest. Deutsche Bank
arranged the issue and the buyers are foreign investors. 

This issue marks a watershed for Landsvirkjun as it is the company's first sale
of a bond issue to foreign investors since the bank crash in 2008. Hörður
Arnarson, Landsvirkjun's CEO says the issue is very positive for the company: 

“This bond issue is very positive for Landsvirkjun as it further secures the
company's liquidity. The conditions of the bond are also, in the light of tough
market conditions, very satisfactory for the company. The issue also reflects
trust in the company among foreign parties and seems to indicate that access to
foreign capital is becoming easier,” says Mr. Arnarson. 

The company now has at its disposal USD 450 million to meet its commitments in
the coming years. With this measure Landsvirkjun has solved a significant part
of its need for recapitalisation for the years 2012 and 2013.