NIB supports Ljósleidarinn’s fibre-optic network investments

NIB has signed a 7-year loan deal with Ljósleidarinn ehf., to support investments in fibre-optic networks in Iceland for the years 2024-2026.

The ISK 4 billion (EUR 27.6 million) loan will co-finance Ljósleidarinn’s investments in the fibre transmission network, fibre connections to premises, network and development systems, and backbone network for the years 2024-2026.

This loan is financed by the proceeds of NIB’s seven-year, 8.5 billion Icelandic krona inflation-linked NIB Environmental Bond, issued on 20 February.

As the primary digital infrastructure service provider, the company manages fibre optic networks across major population centres, connecting thousands of new homes annually. It collaborates with municipalities on urban development projects, playing a crucial role in the country’s urban growth. Additionally, Ljósleidarinn plays a key role in Iceland’s international connectivity by operating Internet connections to European countries.

The construction of new networks primarily takes place in inhabited areas or along existing cabling routes, resulting in minimal environmental impact.

NIB’s President and CEO, André Küüsvek said: “We are pleased to support Ljósleidarinn’s significant investments in Iceland’s digital infrastructure. This project aligns with NIB’s mission to enhance productivity and environmental sustainability in the Nordic and Baltic regions.”

Ljósleidarinn’s CEO Einar Þórarinsson, welcomes the agreement and believes it will strengthen the company for the future: “It is very important that Ljósleiðarinn works with a powerful and reliable party when it comes to financing. With this agreement with NIB, we ensure the continued growth of the company and can continue to build a solid and safe infrastructure for the people of the country, both when it comes to business operations and daily life.”

Ljósleidarinn ehf. is a fully owned subsidiary of Orkuveita Reykjavíkur, a longstanding client of NIB, operating under the name Reykjavik Energy. Orkuveita is owned by the City of Reykjavík (93.5%), the Municipality of Akranes (5.5%), and the Municipality of Borgarbyggð (1%).

NIB is the international financial institution serving Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. The Bank finances projects that improve productivity and benefit the environment of the Nordic-Baltic region. The Bank is headquartered in Helsinki with a regional hub in Riga. NIB has the highest possible credit rating, AAA/Aaa, with S&P Global Ratings and Moody’s.

Contacts
Tiina Kuusela, Senior Banker, Public Sector & Utilities, at +358106180241, tiina.kuusela@nib.int

Arild Moen, Associate Director, Communications, at +358 10 618 0496, arild.moen@nib.int