Landsvirkjun - Company Announcement

Landsvirkjun secures ECA financing from Japan for Theistareykir Geothermal Power Plant

Landsvirkjun has signed an ECA (Export Credit Agency) loan agreement in
relation to a supply contract for two 45 MW geothermal turbines from Fuji
Electric for the Theistareykir Geothermal Power Plant, scheduled to commence
operation in 2017 

The Japan Bank for International Cooperation (JBIC) provided buyer's credit
totaling up to USD 34 million (JBIC's portion) at a fixed interest rate.
Citibank Japan Ltd. (lead arranger), Bank of Yokohama and Commerzbank AG, Tokyo
Branch, cofinanced up to USD 34 million at a floating rate, with Nippon Export
and Investment Insurance (NEXI) providing insurance, bringing the total
financing amount to up to USD 68 million. 

JBIC/NEXI-backed financing has achieved a 20 year tenor without a guarantee of
collection. This is the first JBIC- NEXI buyer’s credit facility for a
renewable energy project within High Income OECD Countries. 

The JBIC/NEXI-backed financing was supported by Takanawa Japan KK, as an
Advisor, and Citigroup, as a Coordinator. 

Hordur Arnarson, CEO:

“This is a milestone agreement for Iceland and Japan since this is the first
ECA financing Iceland receives from Japan. We are very pleased with the support
from the Japanese institutions to finance our first geothermal renewable energy
project.“ 

For further information please contact Rafnar Larusson, CFO at +354 515 9000 or
by email: rafnar@lv.is 

.