Íslandsbanki has completed issuance of sustainable bonds for Icelandic seafood company Brim. The bonds fall under the company‘s sustainable financing framework, both green and blue. Blue bonds are a sub-category of green bonds and relate to sustainability regarding the ocean. The bonds are the first of their kind to be issued by Brim as well as the first in Iceland to be categorised both within a blue and green financing framework.
The bonds, BRIM 221026 GB, have the maturity date of October 22 2026. A quarterly interest rate of 4,67% is paid quarterly but the principal of the bonds is paid in one payment at maturity. The total size of the bond series is ISK 5,000 million at nominal value, of which To date a nominal value of ISK 2,500 have been issued. The bonds were sold at par, yielding 4,75%. In addition, the company has entered into a swap agreement to meet the cash flow of the bonds. With the swap agreement taken into account the company‘s interest expense will amount to 1.8% fixed interest in euros until maturity.