COBALT advises on issuance of EUR 100 million Augstsprieguma tīkls AS green bond

COBALT acted as a legal advisor in connection to the issuance of EUR 100 million green bond by Augstsprieguma tīkls AS (AST). AST is an independent transmission system operator in the Republic of Latvia and this was company’s first issue under the first AST bond issue programme of EUR 160 million.

This bond issue attracted significant interest from investors and was oversubscribed more than two times.

“Bond purchase orders were received from more than 20 investors, including pension funds, asset management funds, insurance companies and banks in Baltic States and Nordics, as well as from international financial institutions – the European Bank for Reconstruction and Development and the Nordic Investment Bank. The wide interest from various investors in the AST’s green bonds is great news, which makes us optimistic about refinancing the investments made in previous years as well as to plan the future capital investments. The raised funds from the first issue will be allocated to refinancing the Kurzeme Ring 3rd stage, CHP-2 to Riga HPP and Latvia – Estonia 3rd Interconnection infrastructure projects,” says Gunta Jēkabsone, AST Chairperson of the Management Board.

With the transaction, AST becomes the first Baltic transmission system operator to issue a green bond. It is also the first time the company has approached the capital market to raise funds.

Luminor Bank acted as the Sole Lead Manager and Green Structuring Advisor of this bond issuance.

COBALT team was led by Specialist Counsel Edgars Lodziņš and included Partner Sandija Novicka, Associate Krišjānis Bušs and Junior Associate Maira Pužule.