Press release
L&G and Landsvirkjun deepen collaboration with $50 million renewable energy investment
L&G partners with Landsvirkjun, Iceland’s National Power Company and largest energy provider, to fund renewable projects.
Full press release
Global investor L&G announces the successful completion of a $50 million investment with Landsvirkjun (‘the Company’) on behalf of L&G’s Institutional Retirement business. Landsvirkjun is Iceland’s National Power Company, with 60 years of experience in building and operating hydroelectric, geothermal and wind power assets. L&G’s investment is part of a broader $150 million issuance by the energy provider.
This commitment strengthens the existing relationship between L&G and Landsvirkjun and follows multiple corporate debt investments in the clean energy company since 2018, including the Company’s debut $200 million green bond in the US Private Placement market1. The Company has performed strongly since then, currently holding an A- (stable) rating from S&P2.
Following significant client demand, Landsvirkjun will continue expanding Iceland’s renewable energy infrastructure through new plants and upgrades to existing hydroelectric, geothermal, and wind facilities. This latest investment reinforces L&G’s commitment to sustainable development in Europe, further supporting its Private Credit business, which currently manages £34bn3 in investments for institutional clients worldwide.
Steve Bolton, Head of Corporate Debt Europe, Asset Management, L&G: “We’re delighted to strengthen our relationship with Landsvirkjun and support their continued delivery of renewable energy infrastructure.“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: “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.”
Landsvirkjun has 60 years of experience in building and operating renewable power assets, playing a vital role in shaping Iceland’s renewable society. Currently, the Company holds an entirely renewable energy generation portfolio. This consists of 19 power stations which account an annual electricity generation of approximately 15TWh. This capacity enables Landsvirkjun to meet over 70% of Iceland’s energy needs whilst utilising the country’s natural energy resources in a sustainable way4.
L&G has a robust history of investing private capital in clean power infrastructure assets to support Europe’s ambitious decarbonisation agenda. Earlier this year, its asset management business announced a total commitment of €607m5 at the final close of the L&G NTR Clean Power (Europe) Fund alongside leading renewable energy specialist NTR. L&G’s Private Markets platform is a major growth driver for the Group, holding £57bn AUM across real estate, infrastructure, private credit, and venture capital, and backed by a team of 200+ investment professionals.
References
1Landsvirkjun successfully issues debut SDG-linked US Private Placement, Landsvirkjun, 16 Mar 2020.
2Issuer Ranking: EMEA Utilities Issuers Ranked Strongest To Weakest, S&P Global, 22 Jan 2025.
3Data as at 12 March 2025. Private Credit AUM includes 100% of assets managed by Pemberton.
5€607m has been raised from investors, which includes €584m of commitments to the Fund and €23m in deployed and allocated co-investment capital alongside the Fund.
Further information
Bella Golding
Senior Communications Executive
Asset Management
T: +44 (0)7596 914332Email Bella Golding
