AS Latvenergo has successfully issued EUR 300 million senior unsecured EU Green Bonds. The bonds bear a fixed annual interest rate of 4.162% and have a maturity of seven years. The issuance was carried out under AS Latvenergo’s Euro Medium Term Note Programme.
The offering attracted strong demand from institutional investors across Europe and beyond, including asset managers, investment funds, supranational institutions and banks. Total demand exceeded EUR 2 billion, representing an oversubscription of 6.7 times the targeted issue size.
The bonds have been issued as European Green Bonds, and the proceeds will be used to finance and refinance eligible green projects in accordance with the European Green Bond Factsheet.
Guntars Baļčūns, Member of the Management Board and Chief Financial Officer of AS Latvenergo, commented: “Each successfully implemented development step reinforces confidence in the direction we have chosen. This eurobond issuance also demonstrates investors’ strong trust in Latvenergo and our long-term development plans. The significant interest from international investors is an important recognition of both the company’s financial stability and Latvia’s investment environment as a whole. The financing raised will enable us to continue targeted investments in renewable energy projects, strengthening domestic electricity generation and advancing towards a more sustainable, greener future.”
BNP Paribas and J.P. Morgan acted as Global Coordinators and Joint Bookrunners, while Skandinaviska Enskilda Banken AB (publ) and Luminor Bank AS acted as Joint Bookrunners.
COBALT Banking & Finance and Tax team advised on the bond issuance in cooperation with Clifford Chance. The team comprised Partners Edgars Lodziņš and Sandija Novicka, and Senior Associate Krišjānis Bušs.
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