The municipality Garðabær in cooperation with Arctica finance has issued bonds in the amount of ISK 500 million. The bonds are indexed and mature over 40 years with 3.8% fixed annual interest. The funds will be used to finance the building of a new nursing home to be raised in Garðabær.

Mr. Gunnar Einarsson, Mayor of Garðabær, says that the terms of the bonds which Garðabær got is as good as it gets in the current market. “The terms reflect the good financial situation of the municipality and are a vote of confidence from investors on how the municipality is run,” says Gunnar.

The new nursing home in Sjáland is planned to be opened at the beginning of 2013. The Icelandic state funds 85% of the start up costs, with Garðabær funding the remaining 15%.