Riga, 2016-04-15 08:09 CEST (GLOBE NEWSWIRE) -- On 14 April 2016 Latvenergo AS (Baa2/stable, Moody`s) under the first series of notes issued additional green bonds in the total nominal value of EUR 25 million with a maturity date of 10 June 2022, a fixed annual interest rate (coupon) of 1.9%, a yield of 1.3107% and an issue price of EUR 1050,658. Bonds are rated Baa2/stable by Moody’s. The placement was implemented on 7 April this year.The total amount of the submitted purchase orders at the end of the placement period had reached 146.1 million euros, thereby 5.8 times exceeding the planned issue amount. Taking into consideration the great interest of investors, the lower and upper limit of spread range during the placement period was reduced by 0.10 percentage points, by fixing the spread at the lowest limit of 1.2% at the end of the placement period. 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 transaction was shared by 16 investors, few of them purchased Latvenergo AS bonds in the primary market for the first time.
The allocation by investor type and geography is provided below:
Investor type
| Asset Managers | 59% |
| Banks | 35% |
| Insurance | 6% |
Country
| Latvia | 62% |
| Estonia | 25% |
| Lithuania | 10% |
| France | 3% |
The bonds are issued under Latvenergo AS EUR 100 million second programme for the issuance of notes and upon admission of the bonds to the regulated market the bonds will be consolidated and form a single series with the bonds in the amount of EUR 75 million issued on 10 June 2015 and will have a common ISIN code LV0000801777. With issue of bonds in the nominal amount of 25 million EUR on 14 April of this year Latvenergo AS has successfully issued green bonds in the amount of 100 million euros within the framework of the entire second programme for the issuance of notes.
Guntars Baļčūns, Chief Financial Officer of Latvenergo AS: “In order to ensure that issue of bonds is successful, not only a favourable situation in financial markets has great significance, but also ambitions to develop the best offer – in the case with Latvenergo these are green bonds, as we were one of the first in the Eastern Europe to issue them. Today I am pleased with our accomplishments – the record high investor interest and fixed low final yield of bonds is a proof of our successful operations as well as investors’ interest to invest in green projects.”
The funds raised from the issued bonds 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 bonds as an investment in connection with certain environmental and sustainability criteria. Information on the use of proceeds from green bonds issued in June 2015 will be available in the Latvenergo Group Sustainability Report 2015, which will be published on 20 April 2016.
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.