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Latvenergo power utility implements placement of seven-year green bonds worth EUR 50 million

Source: 
LETA Latvian News Agency

RIGA, May 7 (LETA) - On May 7, Latvia's power utility Latvenergo implemented placement of seven-year green bonds in the total nominal value of EUR 50 million with a fixed annual interest rate of 0.5 percent and a yield to maturity 0.543 percent, LETA learned from the company.

The total amount of the submitted purchase orders reached EUR 229.8 million. The purchase orders were received from 24 investors, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, Finland and Sweden, and international financial institutions European Bank for Reconstruction and Development and Nordic Investment Bank.

"This is already the second bond program for the issuance of notes under which we are issuing green bonds, and our aim is to invest in environmentally friendly projects. The high level of investor interest in green bonds confirms Latvenergo's strategy to further increase the use of renewable energy sources, which means more hydro, solar, and wind power. It also acknowledges society's wish to live in a sustainable environment," said Guntars Balcuns, Chairman of the Management Board of Latvenergo.

It is intended that the notes will be listed on Nasdaq Riga.

The issuance of notes is being implemented under Latvenergo EUR 200 million third program for the issuance of notes. The arrangers of the issuance are Luminor Bank and Swedbank.

The proceeds from the issuance of notes will be allocated to environment-friendly investment projects in accordance with Latvenergo Green Bond Framework, which has received the Dark green shading issued by the independent research center CICERO Shades of Green. This is the highest category shading in the CICERO's methodology. That indicates the compliance of the planned projects with long-term environmental protection and climate change mitigation objectives, as well as good governance and transparency.

Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services.

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