Glitnir U.S. Geothermal Energy Market Report

It is our pleasure to present our second annual U.S. Geothermal Energy Market Report. The overall development of geothermal energy is very positive in the US. The installed geothermal power generation capacity has increased by 4% to 2,958 MW. The overall number of projects has increased and projects currently underway would expand installed capacity in the U.S. by a 100-130% in the years to come.

Compared to last year the industry is better positioned and availability of drilling rigs has improved. The joint efforts of the Bureau of Land Management (BLM) and the U.S. Forestry Service to speed up the process for leasing geothermal resources on lands they manage will also have a significant impact on the industry.

Recent lease auctions by the BLM have shown the increasing interest in geothermal development and in developers’ confidence in the sector. On August 5, 2008 the BLM auctioned 35 parcels over leases on 105,312 acres for a total sales price of USD 28 million which is up from last year’s record of USD 12 million for 122,850 acres. This should increase the geothermal project pipeline in the U.S. even further.

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The government of Iceland acquires 75 percent share in Glitnir Bank

Capital ratio and liquidity increased substantially

* The government of Iceland pays 600 million euros for a 75% share in Glitnir Bank.
* New equity will be issued.
* Customers, bond holders and employees will not be affected.
* The measure strengthens Glitnir’s capital ratio and liquidity.
* Lárus Welding has been asked to continue in his role as CEO and has agreed to do so.
* The funding position of the bank deteriorated in a few days.
* The Board of Directors and the Bank’s largest shareholders have accepted the government‘s offer.

The government of Iceland has announced that it will acquire a 75% stake in Glitnir Bank at the price of 600 million euros. This new equity will be issued today. The Board of Directors and largest shareholders of Glitnir have accepted the offer subject to the approval of a shareholders’ meeting. Glitnir’s funding has been successful this year despite very challenging market conditions. Nonetheless, the events unfolding in international financial markets in the past two weeks have had unforeseen consequences drastically changing the conditions of Glitnir’s short-term funding. In light of this, the Board of Directors of Glitnir Bank had meetings with the Central Bank of Iceland to discuss possible solutions to the challenge that the Bank was facing. These discussions led to the government of Iceland posing an offer to buy a 75% stake for 600 million euros. The government has asked Lárus Welding to remain in his role as CEO which he has agreed to. The offer was posed late last night and a Board meeting was called in Glitnir this morning. At that meeting it was decided to accept the offer, thus securing a very strong owner and principal shareholder for the bank.

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Negotiations between Glitnir and Byr Savings Bank in Iceland

The Nordic bank Glitnir has announced details of a possible merger with the Byr Savings Bank in Icleand.

Glitnir Bank and Byr Savings Bank announced today that they have initiated discussions on the possible merger of the two companies. This entails that the boards of both companies will not enter any dialogue with other parties while negotiations take place. The results of the negotiations will be made official as soon as they have been concluded.

Glitnir is a Nordic bank, with its head office in Iceland and operations in ten countries. Its home markets are Iceland and Norway where it offers a broad range of financial services; including corporate banking, investment banking, capital markets, investment management and retail banking. For more information, visit

For further information on the merger deal currently under negotiation between Glitnir and Byr, press and industry professionals are requested to contact:

Bjorn Richard Johansen, Managing Director of Corporate Communication, Glitnir.Mobile +47-47 800 100, e-mail:

Sigrun Hjartardottir, Head of Investor Relations, Glitnir.
Mobile + 354 844 4748, e-mail

Reno hosts Geothermal Energy Conference & Expo

The biggest and most important geothermal energy event in the US will take place in Nevada between October 5th and 8th.

The 2008 Geothermal Energy Conference & Expo will be held in Reno, Nevada – with hundreds of geothermal experts and businesses expected to attend from all around the world.

The annual event, which was formerly called the GEA Trade Show and GRC Annual Meeting, will play host to a wide range of companies from the US and abroad within the geothermal power industry.

The conference is expected to draw over 1,000 participants, with more than 70 companies represented in the accompanying trade show. Geothermal Energy 2008 will be held at the Peppermill, Reno’s premiere hotel and casino in Reno.

The geothermal energy industry in the US and elsewhere is currently seeing a surge in public and government interest with senators John McCain and Barack Obama both having expressed their support for geothermal power, which is both a clean and renewable source of energy.

Glitnir Bank, which has predicted dramatic growth in geothermal projects in the US and internationally, will be one of the main sponsors of the event. The bank is a global niche player in two specialised industry sectors; sustainable development of the seafood industry and growth in the geothermal energy industry, with 13 percent of the bank’s loan book and 43 percent of its corporate advisory services derived from these sectors in 2007.

Glitnir’s Global Geothermal Energy Team and US Team will both be present. Glitnir will have a booth in the Expo Hall (Booth number 221, 320).

For more information on the 2008 Geothermal Energy Conference & Expo, and to schedule a meeting with Glitnir Bank at the event, visit

Glitnir advises Nevada Geothermal Power on financing for geothermal power plant

Glitnir Bank, a leading provider of financing and advisory services to the geothermal energy industry, announced this week that it has co-arranged a US$180 million loan for Nevada Geothermal Power with Morgan Stanley & Co.

Glitnir continues to lead the global financial community in support of the geothermal energy industry.

As a lead co-arranger with Morgan Stanley & Co., Glitnir was instrumental in closing a USD 180 million loan facility for Nevada Geothermal Power.

The deal allows the company to enter the construction phase of this 49.5 MW geothermal power project in Nevada. With the construction loan the company is now one major step closer to providing southern Nevada with much needed baseload power.

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Glitnir strengthens seafood team – new business directors in Chile and Peru

Glitnir strengthens its global network of expertise within the seafood industry by appointing two new business directors for Chile and Peru to be based in Santiago and Lima respectively.

Glitnir is applying for representative office licenses in Chile and Peru in order to follow up on the bank’s success in Latin America, and to provide better service for customers. Wilfredo Caceres is Glitnir’s new representative in Peru, while Vicente Perez joins Glitnir in Chile with responsibility for Glitnir’s operations in Chile, Argentina and Uruguay.

“To have people of their calibre joining the bank is another statement of Glitnir’s strength. This will not only build new opportunities for our business in South America, but also create opportunities in other regions seeking targets for European, US and Asian companies in South America”, says Jon Gardar Gudmundsson, Glitnir’s Managing Director for Asia & Latin America.

Fish meal and fish oil production is a growing industry in Peru, a country which has a long history as a fishing nation. Peru has experienced tremendous economic growth in the past few years, with more than a doubling of its GDP between 2003 and 2007. Glitnir assisted Peruvian company Copeinica with listing on the Oslo Stock Exchange in January 2007.

Peru also has a great potential for geothermal energy, which is another of Glitnir’s main areas of expertise. Although Glitnir’s main focus in the region in the near future remains on the seafood sector, there are also plans to tap into the geothermal sector.

Magnus Bjarnason, Executive Vice President of Glitnir, said that, “As a part of aligning Glitnir’s strategy, we feel it is important to have people on the ground in strategic markets. Our two new business directors are great assets to Glitnir’s international strategy and we welcome them on board the Glitnir team.”

Visit the Glitnir corporate website for further information on finance and the seafood industry.

Glitnir recognised for its geothermal energy activities

Nordic Bank GlitnirNordic bank Glitnir wins second prize at the Financial Times Sustainable Banking Awards.

Glitnir Bank made second place for the “Sustainable Deal of the Year” at the Financial Times Sustainable Banking awards which were presented in London last week.

Among speakers at the award ceremony were the Mayor of London, Boris Johnson and Barcleys Chairman, Marcus Agius. The CEO of the Financial Times, John Ridding, presented the awards.

Attending on behalf of Glitnir were; Alexander Richter, Director of Global Industry Research and Communication, Helgi Anton Eiríksson, EVP of International Banking Europe and Jonathan Byrne, Director of Business Management.

The ‘Sustainable Deal’ relates to a geothermal generating facility being developed in the Salton Sea geothermal field in California.

“This is a great acknowledgement for our work, especially when you consider how tough the competition was” said Alexander Ricther. “We were competing with large players such as Citi US, Merrill Lynch, Morgan Stanley and BlueOrchard Finance, but last the two jointly won the category. We have a very strong position in the US geothermal energy market and we intend to strengthen it even further”, said Mr. Richter.

According to the deal, Glitnir Capital Corp. provided a $15 million Senior Secured ‘Resource Verification Loan’ to the company Hudson Ranch. Alexander Richter said that Glitnir Bank was among the first financial institutions to offer this sort of financial product in the USA.

“Last year we provided Nevada Geothermal with a similar loan. The US Geothermal market is very interesting for us as we foresee considerable developments in the energy market especially regarding alternative energy resources are”, said Mr Richter. “Geothermal Energy is surly one of the alternatives. Glitnir’s position in the US geothermal industry is strong and the outlook is very good”.

Visit Glitnir Bank´s website at for more information on Glitnir and geothermal energy.

Bjørn Richard Johansen
Managing Director, Corporate Communications, Glitnir
Tel: +47-47 800 100

The Challenges to the Seafood Industry

GlitnirHow will the current market conditions affect the global seafood industry?

With this week‘s European Seafood Exposition taking place in Brussels, Nordic bank Glitnir is addressing the effects of the current economic climate on the seafood industry.

The economic difficulties pose new challenges to the seafood industry in a number of ways:

Changing consumer behaviour, looking for more economical options
• Increases in the cost of energy, transport, finance, ingredients etc
• Tighter access to funding in capital markets

All of these factors create challenges for management of any seafood company, and changes in the currency rates, notably the US dollar, will affect industries in different countries in different ways. Some will face challenges in pricing, others will enjoy increased marketing opportunities and some will find new opportunities for organic growth or via acquisitions that were not available a short time ago.

Challenging conditions in general naturally emphasise and increase the difference between the performers and the non-performers, creating opportunities for the market leaders to improve their position.

Companies who do nothing to counter the effects of the current economic realities will face serious difficulties in the future. Some will survive by improving their operations, whilst others will not. Some can take advantage of the situation now to grow organically or by pursuing one of the many acquisition opportunities that exist in this fragmented industry.

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Glitnir Bank to attend Brussels seafood show

GlitnirGlitnir has invited the seafood industry to visit the bank´s stand at the European Seafood Exposition to be held in Brussels this week.

The Glitnir Seafood Team, which include representatives from all markets, will be present to discuss business opportunities.

Glitnir is a leading financial partner of the global seafood industry and has a network of industry specialists and corporate financiers in 11 countries around the world.

The European Seafood Exposition is the world’s largest seafood event with over 1,600 exhibiting companies from 87 countries and over 16,000 attendees. The Expo will be held in Parc des Expositions on the outskirts of Brussels between April 22nd and 24th.

Glitnir Bank´s annual Leadership Luncheon will also be held in Brussels in connection with the seafood exposition. The guest speaker this year is Wout Dekker, CEO of Nutreco, the largest feed supplier to the global seafood industry.

The luncheon, which is held for the sixth consecutive year, is well regarded and attended by about 100 executives from the global seafood industry.

Glitnir focuses on the seafood industry as one of three global market niches. The bank, with its roots in Iceland and Norway, offers universal financial solutions tailored to the needs of its seafood clients.

The Glitnir stand will be located in Hall 6, Stand Number 935.

For more information on Glitnir and the European Seafood Exposition, contact Glitnir‘s Seafood Team or visit the Glitnir website at