Latvenergo Group finances its capital expenditures programme partly from owned funds and partly from borrowed capital. Latvenergo Group regularly sources borrowed capital to ensure the required funding for several year investment programme in a timely manner, thus establishing successful long-term cooperation with local commercial banks as well as international financial institutions.
To diversify the sources of funding, Latvenergo AS has issued bonds, accounting for 14% of the total borrowings as of 31.12.2020.
All of the Group borrowings are denominated in EUR currency.
Latvenergo Group borrowings by categories of lenders
Latvenergo Group debt repayment schedule
|Share of fixed interest rate (with interest rate swaps)
In order to maintain a stable level of liquidity, the Latvenergo Group ensures a constant cash flow and maintains additional liquidity reserves.
|Liquid assets (cash and short term bank deposits with maturity up to 3 months)
|Committed long-term loans
|Committed short-term loans
|Investment in liquid financial assets
|Serial number of series of bonds:||1|
|Total issues under series of bonds:||2|
|Aggregate principal amount of series of bonds:||EUR 100,000,000|
|Annual interest rate (coupon):||fixed, 1.9%|
|Nominal amount of the bond:||EUR 1,000|
|Issue date:||first issue in the amount of EUR 75,000,000 on 10 June 2015 (deal review - placement, issue);
second issue in the amount of EUR 25,000,000 on 14 April 2016 (deal review - placement, issue).
|Maturity date:||10 June 2022|
|Interest (coupon) payment dates:||10 June each year|
|Listing:||NASDAQ Riga AS|
|Use of proceeds:||Financing and refinancing of the eligible projects according to the Latvenergo AS Green Bond Framework|
|Programme:||Bonds issued under second Latvenergo AS EUR 100 million Programme|
The registered share capital of Latvenergo AS is EUR 790,347,849, consisting of 790,347,849 ordinary shares with a nominal value of EUR 1 per share.
The distribution of Latvenergo AS dividends is regulated by the Republic of Latvia Law on the Medium-Term Budgetary Framework for 2021, 2022 and 2023. According to the regulation, the expected amount of dividends payable by Latvenergo AS for the use of state capital in 2021 (for the reporting year 2020) is not less than EUR 98.2 million (including corporate income tax), in 2022 (for the reporting year 2021) is not less than EUR 87.7 million (including corporate income tax) and in 2023 (for the reporting year 2022) is not less than EUR 70.95 million (including corporate income tax).
The actual amount payable by Latvenergo AS in dividends is determined by the Shareholders’ Meeting after the approval of the annual report, upon the evaluation of the results for the previous year.
Latvenergo AS maintains long-term cooperation with the international credit ratings agency Moody’s Investors Service. The credit rating to the company was assigned for the first time in March 2004.
Latvenergo AS credit rating
|Long-term rating||Outlook||Last approved