Issue of Latvenergo AS bonds to be arranged by SEB banka AS

Latvenergo AS intends to issue bonds in the amount of up to EUR 100 million as part of the plan for raising borrowed capital. Following a competitive dialogue, the functions of the arranger and agent of the securities issue have been delegated to SEB banka AS.


Riga, 2015-05-15 13:11 CEST (GLOBE NEWSWIRE) -- Continuing its successfully started operations on the securities market, Latvenergo AS plans to carry out a public bond issue for a total nominal value of up to EUR 100 million. The bonds are planned to be listed on the Nasdaq Riga Baltic Bond List. The specific parameters of the issue will be defined in prospectus. SEB banka AS will perform the functions of the arranger and agent of the securities issue.

“Benefits of the existing activity of the Group on the capital market have been very clear, which means that the issue of the bonds can be continued. We have obtained an alternative funding source, which includes not only institutions or commercial banks, but represents a wide range of investors with a stable interest in Latvenergo bonds. The amount of EUR 105 million raised in the previous issues has been invested in the production, transmission and distribution facilities requiring investment. These are the facilities that can be recognized and appreciated by both population and investors – the examples include the reconstruction of the Daugava HPPs cascade, replacement of overhead power lines with cable lines, etc. Thus, the bonds have helped the company to secure the necessary investments, while creating a possibility for our broad range of clients to invest money in the economy of Latvia,” said Zane Kotāne, Member of the Management Board of Latvenergo AS, CFO.

Ainārs Ozols, CEO of SEB Latvia: "We appreciate Latvenergo's long-term approach in terms of company's core business as well as in managing its finances. Sustainability principles are a confirmation of Latvenergo's well-considered and responsible business strategy and we are glad for this opportunity to contribute to its goals with our experience and expertise. Successful previous cooperation, the high demand for Latvenergo bonds from investors' side and the current circumstances in capital market are just a few indications confirming that this is the right moment for strategic investment decisions aimed at strengthening company's competitiveness and quality of its services".

Issue size, bond price, maturity and yield to maturity range will be set forth in the final terms.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: 
investor.relations@latvenergo.lv

www.latvenergo.lv

About Latvenergo

Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.

Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity  supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.