Landsvirkjun Secures Financing from Japan for Theistareykir Geothermal Power Plant

Geothermal power plant
Landsvirkjun's Þeistareykir Geothermal Power Station in Iceland/

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 Iceland in 2017.

The Japan Bank for International Cooperation (JBIC) provided buyer’s credit totaling up to US $34 million (JBIC’s portion) at a fixed interest rate. Citibank Japan Ltd. (lead arranger) and the Bank of Yokohama and Commerzbank AG,  co-financed 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 US $68 million.

This is the first JBIC-NEXI buyer’s credit facility for a renewable energy project within High Income OECD Countries.

Hordur Arnarson, CEO said: “This is a milestone agreement for Iceland and Japan since this is the first ECA financing Iceland has received from Japan. We are very pleased with the support from the Japanese institutions to finance our first geothermal renewable energy project.”

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This post was prepared by Solar Thermal Magazine staff.

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