Riga, 2016-04-08 12:26 CEST (GLOBE NEWSWIRE) -- On 7 April 2016 Latvenergo AS (Baa2/stable, Moody`s) successfully implemented placement of second tranche of green bonds in the total nominal value of EUR 25 million under the first series of notes of second programme for the issuance of notes of Latvenergo AS.
The public announcement was made in the Republic of Latvia, in the Republic of Lithuania and in the Republic of Estonia. The initial yield to maturity range was established from SW* +1.30% to SW +1.55%. Considering huge investor interest during the placement period the yield to maturity range was decreased and determined from SW +1.20% to SW +1.45%. The total amount of the submitted purchase orders had reached EUR 146.1 million, respectively, 5.8 times exceeding the planned issue amount. The purchase orders were received from 21 investor, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, France, Austria and Finland.
The terms of the additional issue of the first series of notes under the second programme for the issuance of notes of Latvenergo AS are the following:
Serial number of series of notes: 1
Tranche: 2
Principal amount of the issue: EUR 25 million
Amount of the notes: 25 000
Nominal amount of the note: EUR 1 000
Annual interest rate (coupon): fixed, 1.9%
Issue price: EUR 1 050.658
Final yield to maturity: 1.3107%
Issue date: 14 April 2016
Maturity date: 10 June 2022
Rating (Moody’s): Baa2, stable
Use of Proceeds: Financing and refinancing of the eligible projects according to the Latvenergo AS Green Bond Framework
Aggregate principal amount of the first series of notes: EUR 100 million
In accordance with the Final Terms of the second tranche of the first series of notes temporary ISIN code is LV0010801775. Upon admission of the notes to the regulated market the notes will be consolidated and form a single series with the notes in the amount of EUR 75 million issued on 10 June 2015 and will have a common ISIN code LV0000801777.
The issue of notes is being implemented under Latvenergo AS EUR 100 million second programme for the issuance of notes. The arranger of the issue of notes – SEB banka AS.
The funds raised will be channelled to green-minded projects financed or part-financed by Latvenergo Group that concern generation as well as distribution and transmission network assets in accordance with Latvenergo AS Green Bond Framework, whereby the Center for International Climate and Environmental Research - Oslo has issued a second-party opinion regarding the suitability of the notes as an investment in connection with certain environmental and sustainability criteria. The Center for International Climate and Environmental Research - Oslo has assigned to the Latvenergo AS Green Bond Framework the Dark Green shading, which is the highest possible assessment in the field of environment. Information on use of proceeds from green bonds issued on 10 June 2015 will be publicly available on 20 April 2016 as a part of Latvenergo Group Sustainability Report 2015.
* an interpolated interest rate swap derived from a six-year interest rate swap and a seven-year interest rate swap (fixed at 0.1107% level)
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 (lease 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.
