AS “Latvenergo” has issued bonds in the amount of EUR 50 million, according to the company’s announcement to the “Nasdaq Riga” stock exchange.
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On Wednesday, February 15, “Latvenergo” implemented the placement of six-year green bonds for the total amount of 50 million euros at nominal value with a fixed annual interest rate and yield to maturity of 4.952%.
Demand for bonds reached 132.6 million euros.
Bond purchase warrants were received from more than 20 investors, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, Germany and Austria, and from international financial institutions – the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank.
The bonds are expected to be listed on the debt securities list of the “Nasdaq Riga” stock exchange.
The funds obtained in the issue will be directed to the implementation of environmentally friendly investment projects in accordance with the Green Bond Framework of “Latvenergo”, for which the independent research center “Cicero Shades of Green” has awarded the highest possible green bond rating – “Dark green”. This indicates the compliance of the planned projects with long-term environmental protection and climate change reduction goals, as well as good management and transparency of the company, the company notes.
The organizers of the bond issue are “Luminor Bank” and “Swedbank” of Sweden. Legal support was provided by the “Cobalt” law firm.
The bond issue was implemented within the framework of “Latvenergo’s” third bond offering program in the amount of EUR 200 million.
“Latvenergo” is engaged in the production and trade of electricity and thermal energy, as well as natural gas trade and provision of electricity distribution services. “Latvenergo” belongs to the state and its capital shares are held by the Ministry of Economy. The company’s bonds are listed on the debt securities list of the “Nasdaq Riga” stock exchange.
