Global investor Legal & General (L&G) has finalised a US$50mn investment with Landsvirkjun, Iceland’s National Power Company, through L&G's Institutional Retirement business.
This investment forms part of a wider US$150mn issuance by Landsvirkjun, which has over six decades of expertise in developing and operating hydroelectric, geothermal, and wind energy assets.
The transaction builds upon a well-established partnership between L&G and Landsvirkjun, which dates back to 2018. That year, L&G participated in the Company’s inaugural US$200mn green bond offering in the US Private Placement market. Landsvirkjun has consistently performed well since then, maintaining a solid A- (stable) credit rating from S&P.
Driven by robust investor interest, Landsvirkjun plans to continue enhancing Iceland’s renewable energy infrastructure by constructing new facilities and upgrading existing hydroelectric, wind, and geothermal plants. This new capital injection further supports L&G’s commitment to sustainable growth across Europe and reinforces its Private Credit division, which manages £34bn (approximately US$43bn) in assets on behalf of institutional clients around the globe.
“We’re delighted to strengthen our relationship with Landsvirkjun and support their continued delivery of renewable energy infrastructure,” said Steve Bolton, Head of Corporate Debt Europe, Asset Management, L&G. “With our deep expertise and longstanding relationships, we are able to access attractive investment opportunities that can drive meaningful social and environmental impact, delivering value for investors and society.”
Roman Hederer, Head of Portfolio Management, Institutional Retirement, L&G, added, “This transaction offers a great example of how UK pensions can drive investment in socially beneficial assets across various sectors and geographies. The expansion of our partnership with Landsvirkjun reflects our continued commitment to supporting sustainable development through carefully chosen investment opportunities.”
With six decades of experience, Landsvirkjun plays a central role in Iceland’s transition to a renewable energy society. The company owns and operates a portfolio of 19 renewable power stations, generating approximately 15 terawatt-hours (TWh) of electricity annually. These assets supply over 70% of Iceland’s energy needs while responsibly harnessing the country’s natural energy resources.
L&G, through its Private Markets platform, continues to direct private capital into clean energy infrastructure that advances Europe’s decarbonisation goals. Earlier this year, its asset management arm committed €607mn (approximately US$690mn) at the final close of the L&G NTR Clean Power (Europe) Fund, in collaboration with renewable energy specialist NTR. Today, the platform manages £57bn (approximately US$72bn) in assets across infrastructure, real estate, private credit, and venture capital, supported by a team of more than 200 investment professionals.