The Nordic Investment Bank supports Ljósleiðarinn’s infrastructure investments

The Nordic Investment Bank (NIB) has signed a 7-year loan agreement with Ljósleiðarinn ehf. to support investments in Iceland’s fiber-optic network from 2024 to 2026.

The ISK 4 billion loan will co-finance key development projects undertaken by Ljósleiðarinn. The funding will go toward the continued expansion of the fiber-optic network, including fiber connections for households and businesses, development of network and transport systems that ensure secure and efficient data transmission, and overall strengthening of the system.

This financing is part of NIB’s recent issuance of bonds in Icelandic krona.

An essential step toward continued growth
Ljósleiðarinn is a leading company in developing digital infrastructure in Iceland, operating in all major urban areas across the country. It connects thousands of new homes annually and collaborates with municipalities on development projects supporting urban growth and Iceland’s digital future.

Moreover, Ljósleiðarinn plays a key role in Iceland’s international connectivity by operating internet links to European countries.

All of Ljósleiðarinn’s projects are carried out with a strong focus on responsible practices and sustainability. New connections are laid alongside existing transport routes and built-up areas, minimizing environmental impact.

Recognition of the importance of this investment
According to André Küüsvek, President of NIB, financing Ljósleiðarinn supports the Bank’s goals of increasing productivity and sustainability in the Nordic and Baltic countries:

“We are very pleased to support these crucial investments in Iceland’s digital infrastructure. Robust telecommunications infrastructure is essential for economic growth and innovation, and the project aligns well with NIB’s emphasis on sustainability and technological advancement.”

Einar Þórarinsson, CEO of Ljósleiðarinn, welcomes the agreement and believes it will strengthen the company over the long term:

“It is extremely important for Ljósleiðarinn to partner with a strong and reliable entity for financing. With this agreement from NIB, we can secure continued growth and keep building robust and reliable infrastructure for people throughout Iceland—both for businesses and everyday life.”

About the parties
Ljósleiðarinn ehf. is owned by Orkuveitan (Reykjavik Energy), a NIB client. Orkuveitan is a publicly owned company, with the City of Reykjavík (93.5%), the Municipality of Akranes (5.5%), and the Municipality of Borgarbyggð (1%) as shareholders.

The Nordic Investment Bank (NIB) is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden. NIB provides financing to private and public sector projects within and outside the member countries. It holds the highest possible credit ratings, AAA/Aaa, from S&P Global Ratings and Moody’s.