Riga, 2015-08-03 16:35 CEST (GLOBE NEWSWIRE) -- In accordance with the report of the international rating agency Moody’s Investors Service (Moody’s), the green bonds in the amount of EUR 75 million issued by Latvenergo AS have received a Baa2 credit rating and a stable outlook. The bonds were issued on 10 June 2015 within the second programme for the issuance of bonds of Latvenergo AS for EUR 100 million, with a fixed coupon rate of 1.9% and maturity on 10 June 2022.
Āris Žīgurs, Chairman of the Board of Latvenergo AS: “The issuance of green bonds was an ambitious, but a rationally justified step. Our leading plants operating on renewable resources – hydroelectric power plants – have also been highlighted in the Group’s credit rating assessment by Moody's. Undoubtedly, the green bonds and their assessment is further proof to investors that Latvenergo operates effectively and renewable resources is an advantage in the conditions of the open electricity market across the Baltics.”
To support the aforementioned credit rating, Moody’s emphasises the activities of the Group, an important electricity operator in the domestic market, as well as a substantial share of competitive electricity generated from renewable resources in the total electricity production as enhancing positive aspects.
“The Group's operation in the free electricity market is a challenge, which is also stressed by Moody’s: if their assessment refers to this factor as one of the risks that may undermine the company’s importance in the Latvian market, it must be emphasized that we have strengthened our position in the Baltic market in a timely manner, taking account of the growing competition,” continues Āris Žīgurs.
The international credit rating agency Moody’s Investors Service assigned the long-term credit rating Baa1, stable to Latvenergo AS for the first time in March 2004. Furthermore, in June 2005, Moody’s raised the rating of Latvenergo AS to A2, stable, which also corresponded to Latvia’s sovereign credit rating. In 2009, due to the negative impact of the financial crisis on Latvia’s economy, the credit rating agency gradually downgraded the credit rating to Baa3 with a negative outlook. In March 2010, the outlook of credit rating was changed to stable, thus credit rating Baa3 with a stable outlook was in force until February of this year, when it was upgraded to Baa2, stable.
Moody’s announcement is available on Latvenergo website’s section Investors (http://www.latvenergo.lv/lat/investoriem/finansu_informacija/obligacijas/).
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@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.