Orkuveita Reykjavíkur - Company Announcement

Orkuveita Reykjavikur Enters a Currency Swap Agreement with Arion Bank

Reykjavik, 2012-06-22 00:26 CEST (GLOBE NEWSWIRE) -- The Board of Directors of
Orkuveita Reykjavikur (Reykjavik Energy - OR) has agreed to enter a currency
swap agreement with Arion Bank in order to protect the Company against the
volatility of the Icelandic currency. The agreement ensures OR access to
foreign currency over the next six years and is valued at ISK 15 billion. It is
the third contract in a few weeks the Company makes to solidify its financing.
A month ago OR reported agreements with the European banks Dexia Crédit Local
and DePfa on changes of amortizations. 


Bjarni Bjarnason, CEO:
The reformation of OR‘s operations was completed in March this year. Those
improvements have earned the Company increased credibility and have enabled us
to strengthen its financial foundations. OR‘s foreign debt is still high and
fluctuations in exchange rates are one of the major risks to the Company‘s
financial stability. Therefore, it is reassuring to reach an agreement to
mitigate them. In recent weeks, the Company has re-negotiated amortizations
with foreign financial institutions and is pleased to enter this one with a
solid Icelandic bank. 


         For further information:
         Bjarni Bjarnason
         CEO
         + 354 516 7707