The issuance of green bonds of the Latvian electricity transmission system operator JSC Augstsprieguma tīkls on the stock exchange is an important event not only for the common interests of the company, but also for the whole country. (JV).
He noted that smart reindustrialisation requires capital and can be obtained by borrowing from a bank, but in this case only with interest. Thus, in the opinion of the Prime Minister, the issuance of bonds of the “High Voltage Network” will help to develop the stock exchange.
In Latvia, the fact that Augstsprieguma tīkls will now issue its bonds helps to develop our capital market, our stock exchange. where you do not have to pay bank interest, “said Kariņš.
At the event, the company’s initiative was also praised by the Minister of Finance Jānis Reirs (JV), who emphasized the importance of good governance in the company’s development.
He also noted that in view of the growing role of electricity in the future, the High Voltage Network’s move to issue green bonds on the stock exchange was “just in time”, as funds were needed, for example, to synchronize with the European market and upgrade the grid to gain access to green energy.
At the same time, the Minister of Finance noted that the issuance of bonds is a good way to exercise public control over a state-owned company through market mechanisms. “The stock exchange is the best way to create additional control, additional supervision for a state-owned company, but control is exercised by the company and the market system,” said Reirs.
The agency LETA has already reported that the board of the Nasdaq Riga stock exchange has decided to start listing the bonds of the High Voltage Network on the Baltic Debt Securities List on Monday, the stock exchange said in a statement.
The Baltic Debt Securities List will include 100,000 bonds with a nominal value of 1,000 euros. The maturity date of the bonds is January 20, 2027. The coupon interest rate is 0.5%.
The interest in the 100 million euro green bonds issued by the High Voltage Network, which is the company’s first bond issue out of a total of 160 million euros, has exceeded the offer twice.
Gunta Jēkabsone, Chairman of the Board of Augstsprieguma tīkls, explains that the bond purchase orders were received from more than 20 investors, including pension funds, asset management funds, insurance companies and banks in the Baltic and Nordic countries, as well as international financial institutions – the European Bank for Reconstruction and Development. and the Nordic Investment Bank.
Wide investor interest in “High Voltage Network” green bonds will allow the company to refinance past investments and plan significant capital investments in the future. The proceeds from the first tranche will be used to refinance the Kurzeme Ring Road, the third Estonia-Latvia interconnector and the TEC-2 – Riga HPP infrastructure projects.
The bond issue was organized and managed by Luminor Bank, which also advised on the green bond framework. Legal assistance in connection with the bond issue was provided by the law firm Cobalt.
Nasdaq Riga has launched a listing procedure for the inclusion of High Voltage Network bonds in the Baltic Debt Securities List. The planned bond issue is in the amount of 100 million euros, the nominal value of the bonds is 1000 euros. The maturity date of the bonds is January 20, 2027.
“Augstsprieguma tīkls” is the Latvian electricity transmission system operator that ensures the security of electricity transmission network operations and the electricity supply of the Latvian electricity system, provides transmission system services, performs operational management of the transmission system and ensures safe, stable transmission of electricity in the system. The “high voltage network” is state-owned.
Augstsprieguma tīkls is also the largest shareholder of the unified natural gas transmission and storage system operator JSC Conexus Baltic Grid (Conexus) – the company owns 68.46% of Conexus shares.
–
