Latvenergo has been successfully raising funds through bond issues since 2012. This year, the company is taking a step further by issuing eurobonds, i.e., entering the international market. With strong demand, Latvenergo has carried out a 400‑million‑euro bond placement. Total demand from 140 investors exceeded the target volume 5.5 times. Over the next two years, the company plans to borrow up to an additional 600 million euros in this way.
As reported previously, Latvenergo is continuing its experience in the securities market that began in 2012 by issuing internationally rated eurobonds. Latvenergo has carried out a 400‑million‑euro bond placement with a fixed interest rate of 3.612% and a maturity of 5 years under Latvenergo’s medium‑term eurobond offering programme. The bond maturity date is 13 November 2030. As with previous bond offering programmes, the new bonds are not intended to be converted into shares, which means that Latvenergo is and will remain a company fully owned by the state.
“Each time we take a step further, it is a pleasure to see the results of our work – Latvenergo is truly gratified by the strong interest and trust of investors. Both we and Latvia have received high recognition as an environment for investment – the successful 400‑million‑euro issue of European green bonds confirms that international investors appreciate our strategic drive for growth. We are ready to continue this by investing the funds raised in renewable energy projects, strengthening the transition to green energy and contributing to reducing Latvia’s electricity imports,” says Management Board member and Chief Financial Officer Guntars Baļčūns.
The transaction generated strong demand from European and global investors – including asset managers, investment funds, supranational institutions and banks. More than 140 investors participated, and total demand before the final price was set exceeded the target volume 5.5 times, reaching 2.2 billion euros.
The bonds were priced at 125 basis points above the swap rate, and carry a coupon of 3.612%. The bonds have been issued as European green bonds, and the proceeds will be allocated to the financing and refinancing of eligible green projects in accordance with the European green bonds factsheet.
In this transaction, Latvenergo has mandated BNP Paribas and J.P. Morgan SE as global coordinators and bookrunners, and Skandinaviska Enskilda Banken AB (publ) and Luminor Bank AS as bookrunners. BNP Paribas and J.P. Morgan SE are also acting as green structuring agents. The bonds will be admitted to trading on the regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg) and on the regulated market of AS Nasdaq Riga.
Originally published at https://inc-baltics.com/latvenergo-aiznemies-400-miljonus-pirmo-dalu-no-iecereta-miljarda/
Like
Love
Happy
Haha
Sad
