REC Sjóðir, a specialised fund operator owned by ARCUR, has established a cooperation platform for debt financing of infrastructure and completed the financing of a new fund called the Icelandic Infrastructure Company. Road reconstruction.

The fund, which is financed by pension funds, specializes in debt financing of infrastructure projects, whether during the implementation period of projects at the beginning of their implementation and/or in connection with the financing of such projects for the long term.

Co-investments by pension funds in the cooperation platform of the Icelandic Infrastructure Company are expected, according to a special subscription arrangement. In this way, the fund supports the financing of larger infrastructure projects in Iceland.

Sigurður Kristinn Egilsson, CEO of the Icelandic Infrastructure Association, says that the investment capacity of the cooperation platform, i.e. the fund together with co-investments according to a subscription agreement with a pension fund, is at least 23 billion ISK (184,2 million USD).

The establishment of this cooperation platform for infrastructure financing in Iceland is an extremely positive and helpful step to raise the bar needed to accelerate the development of infrastructure in Iceland. There is enough to be done in that platform, says Sigurður Kristinn.

“The fund’s unique position is, among other things, that it can finance infrastructure projects from the start of construction, while ensuring long-term financing.”

A recent report by the Confederation of Icelandic Industries estimates the cumulative financial needs for infrastructure maintenance at over 680 billion ISK (5,4 billion USD). This does not include the financial needs for necessary new investments.

Source:

• Viðskiptablaðið (in Icelandic)
• Mbl (in Icelandic)