All agreed loans

Iceland. Landsnet hf.

Date of loan: 17 Oct 2007
Country: Iceland
Customer: Landsnet hf.
Amount in USD: USD 50 million
Amount in EUR: EUR 35.2 million
Maturity: 15 years
NACE sector / loan type: Electricity, gas, steam and hot water supply
Business area: Energy and environment

Project

The 15-year maturity loan, totalling USD 50 million, is aimed at financing the company's investments in new transmission infrastructure, including transmission lines and cables as well as new substations and extensions of existing ones. The infrastructure investments are necessary to satisfy the Icelandic aluminium producers' increasing needs for electric power. The reliability of the power transmission is of vital importance for the competitiveness of the Icelandic economy, particularly its power-intensive industries. The scope of Landsnet's investments will include the development of the power supply infrastructure for a new Alcoa smelter in Reyðarfjörður, an enlargement of the Century Aluminium smelter, projects for the current market, as well as fibre optic projects. Established in 2005, Landsnet owns and operates the entire national 3,000-kilometre transmission grid. All of Iceland's utilities and power-intensive consumers are connected to the national grid.

Sustainability summary

Landsnet's investment programme in several small-scale electrical transmission and fibre optic projects has minor and easily manageable environmental impacts. The projects typically involve refurbishment and new 66 and 132 kV lines, substations and placement of fibre optic cables. Landsnet has developed a quality and environmental management system. The quality system part is certified according to ISO 9001. Landsnet is aiming to certify the EMS part in accordance with ISO 14001.