Small Icelandic company helping to create jobs

icelandglassMost of the big Icelandic firms such as Baugur Group, FL Group and Moderna went bankrupt after the financial meltdown in Iceland when the three main banks Kaupthing, Glitnir and Landsbanki collapsed. One year later, and now a lot of the smaller Icelandic businesses are beginning to generate more energy and drive. One such company is the online shop specialising in selling Icelandic products, called the Nordic Store.

With a vast selection of Icelandic products for sale worldwide, the Nordic Store is without a doubt a leading online shop in Iceland, focusing on providing the internet shopper with the best produce Iceland has to offer. Continue reading

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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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 advises American Seafoods on purchase of Alaskan pollock assets

Glitnir Bank, the leading provider of financing and advisory services to the global seafood industry, advised Seattle-based American Seafoods Group on the acquisition of the Alaskan pollock assets of Yardarm Knot, Inc.

The acquisition of these assets by American Seafoods Group (ASG) will enable it to further its position in the dynamic and growing global seafood industry.

Glitnir’s seafood team in New York acted as exclusive financial advisor to ASG whilst also participating in the financing of the acquisition.

Executive Vice President, International banking, Magnus Bjarnason, commented, “We are delighted to have advised ASG on this milestone transaction, which will increase the efficiency of the seafood sector in Alaska. Our industry team in New York again successfully acted as the lead advisor on a significant industry transaction, and our debt financing unit played a key role.”

Glitnir has a long-standing relationship with ASG, its shareholders and management team, and has supported the company in several of its most critical transactions. According to Bernt Bodal, CEO of ASG, Glitnir has been “a valuable and trusted partner delivering results both as a financial backer and as an advisor throughout the transaction processes.”
Magnus Bjarnason added, “Glitnir is proud to be indirectly supporting the economic improvement of the Alaskan communities, given their ownership in ASG.”
A regional fund and fishermen’s association, which together represent around 10,000 Alaskans, supply valuable fisheries quotas to ASG and own a significant share in the company.

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

Visit Glitnir’s corporate website for more information on its financial services for the seafood industry.

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 Second Quarter 2008 results

Glitnir has released its financial results for the second quarter of 2008.

• Net profit ISK 7.6 bn. up 29,3% from Q1 08
• Record quarter for net operating income, ISK 26.9 bn., a 5% increase from ISK 25.6 bn. in Q1 08
• Return on equity 17,0% compared 15,0% in Q1 08
• Net Interest income ISK 17.8 bn. growing 28.9% QoQ
• Fees and commissions remain strong at ISK 9.3 bn. despite a slight drop from Q1 08
• Net operating expenses were ISK 14.8 bn. rising by 7.2% from Q1 08.
• Real growth of the loan portfolio negative by ISK 45 bn. from the previous quarter
• Liquidity position remains strong at 8.1 bn. euro
• CAD ratio rises to 11.2%. Tier 1 capital ratio stands at 8,0% up from 7.7% in Q1 08.

• Core earnings have increased by 10% on average each quarter (CQGR) from Q2 07
• Core profit before tax[1] grew 19.9% QoQ and 25.9% YoY.
• Cost / Income ratio is stable at 55%
• Continued strong performance by Capital Markets, Corporate Banking and Investment Banking units in the first half of 08
• 40% of advisory fees YTD originated through niche related activities. Solid pipeline going forward.
• Launch of a new international deposit product, Save&Save, in Norway and Iceland. This product will be introduced in other markets in the coming quarters.
• Successful issue of EUR 900m covered bond in Norway during the quarter

Larus Welding, Glitnir CEO: “We are very content with the results for the second quarter, where our core profits have risen by nearly 20% for the second consecutive quarter. As a result of our strategy and the initiatives we have adopted since Q4 2007, the bank has shown great resilience in a challenging market environment. We have continued to successfully increase our core income and profits while at the same time focusing on several cost cutting initiatives. We estimate that these co-ordinated efforts will start to bear real fruit in the second half of the year.

During the first half, we have successfully raised EUR 2.4 bn in funding while paying outstanding maturities of EUR 2.1 bn. At the same time we have maintained a strong CAD ratio of 11.2% despite a severe weakening of the ISK. We have also been successful in deleveraging our balance sheet. The bank’s liquidity position remains strong at EUR 8.1 bn.

At the end of the quarter, the bank launched a new international deposit product, Save&Save, in Norway and Iceland which will be expanded into other markets in due course.

Looking forward, we will continue to focus on our core operations leveraging on the bank’s niche strategy and the positive outlook for the global food and energy sectors where we have a strong market presence.

In our immediate plans we do not expect the wholesale funding markets to improve in the near future. With our strong asset quality intact we will continue to manage our balance sheet, further diversifying our funding sources and deleveraging non-core assets.”

Glitnir’s condensed consolidated interim accounts can be found on

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

Glitnir Bank announces financial results for Q2 2008

Glitnir will host the following presentations and webcasts in connection with the publication of the Group’s results for the first half of 2008.

An English version of the presentation will be available at on the morning of Friday August 1st from 7:30 a.m. (8:30 GMT).

Presentation in Reykjavík, Iceland and webcast

Lárus Welding, CEO will present Glitnir’s results to shareholders and market participants on Friday, August 1st, at 9 a.m. (10 a.m. GMT) at the Nordica Hilton Hotel in rooms H and I. The meeting will be conducted in English. A live broadcast of the meeting can be accessed on Glitnir’s corporate website,, where questions can be submitted to the meeting via webcast.

Presentation in London, UK

Lárus Welding, CEO and Rósant Már Torfason, CFO will present Glitnir’s results to market participants on Tuesday August 5th at 4 p.m. (GMT) at the Andaz Hotel in the Great Eastern Room(first floor), 40 Liverpool Street, London ECM2 7QN.

Registration: Please pre-register by e-mail to

Booking media interviews

To book media interviews, please contact Bjørn Richard Johansen, Managing Director, Corporate Communications, by e-mail to or mobile +47 47 800 100.

For further information:

Sigrún Hjartardóttir,
Head of Investor Relations,
Phone: +354 440 4748 or mobile: +354 844 4748,

Geothermal Energy on the Agenda in New York

glitnir-banner.jpgThe President of Iceland, DOE Assistant Secretary Alexander Karsner, and Dan Reicher, Director of Climate Change Initiative, speaking at a Geothermal Renewable Energy Workshop organised by Glitnir and GEA.

Demonstrating the widespread support for renewable, geothermal energy, the President of Iceland as well as officials of the current Bush and former Clinton Administrations are scheduled to speak at a workshop in New York City, July 23rd.

Department of Energy Assistant Secretary Alexander Karsner and former Assistant Secretary Dan Reicher (now Director for Climate Change and Energy Initiatives) are both on the agenda for the event. The keynote luncheon speaker will be the President of Iceland, Ólafur Ragnar Grímsson.

The Geothermal Energy Association (GEA) together with Ormat and Glitnir Capital Corp. will host a geothermal energy finance and development workshop at the Ritz-Carlton, Battery Park in New York City on Wednesday, July 23rd to introduce geothermal energy to the NYC finance community. The event will feature an all-star cast of expert presenters from leading companies in the geothermal industry.

The workshop, entitled “Geothermal 101-The Hottest Clean Energy Source,” will include morning sessions in which leading professionals will cover the basics of geothermal energy. In the afternoon, presentations will include an overview of the world and U.S. geothermal markets, an interactive finance panel with top geothermal financiers and developers, and a showcase of companies developing new projects and technologies. Among companies participating are: Glitnir Capital Corp., (capital arm of Nordic bank Glitnir), Ormat,, MidAmerican Energy, EGS Inc., ThermaSource, U.S. Renewables Group, Merrill Lynch, GeothermEx, UTC Power, Terra-Gen Power, Western GeoPower, Raser Technologies, Iceland America Energy, Geysir Green Energy, Vulcan Power, and Enel North America.

Geothermal energy today provides power in California, Nevada, Hawaii, Utah, Idaho, and Alaska. According to GEA, more than 80 new geothermal power projects are being built in 12 states. When completed, these projects will represent an investment of over $11 billion and more than double U.S. geothermal power production. In 2006, the Massachusetts Institute of Technology and the National Renewable Energy Laboratory issued separate reports estimating that geothermal energy could potentially provide over 100,000 MW of electric power.