Financial information

Key figures

Funding

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 19% of the total borrowings as of 31.12.2021.


All of the Group borrowings are denominated in EUR currency.

Latvenergo Group borrowings by categories of lenders

795,0 MEUR

Latvenergo Group debt repayment schedule

 31.12.2021
Share of fixed interest rate (with interest rate swaps)
37%
Duration
1,5 years 


 

In order to maintain a stable level of liquidity, the Latvenergo Group ensures a constant cash flow and maintains additional liquidity reserves.

31.12.2021
Liquid assets (cash and short term bank deposits with maturity up to 3 months)
MEUR
97.1
Committed long-term loans
MEUR
35
Committed short-term loans
MEUR 63
Total
MEUR 
195.1

Bonds

ISIN code: LV0000870129
Nominal amount of the bond: EUR 1,000
Issue date: Issue date: 5 May 2022 (deal review - placement, issue)
Interest (coupon) payment dates: 5 May 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 third Latvenergo AS EUR 200 million Programme

Green Bond Framework

CICERO opinion

Final Terms, dated 28.04.2022

Base Prospectus


ISIN code: LV0000802460
Nominal amount of the bond: EUR 1,000
Issue date: Issue date: 17 May 2021 (deal review - placement, issue)
Interest (coupon) payment dates: 17 May 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 third Latvenergo AS EUR 200 million Programme

Green Bond Framework

CICERO opinion

Final Terms, dated 07.05.2021

Base Prospectus

ISIN code: LV0000801777
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).
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

Report on Green Bonds 2020 is available on pages 83-84 in Sustainability and Annual Report 2020
Report on Green Bonds 2019 is available on pages 78-79 in Sustainability and Annual Report 2019 
Report on Green Bonds 2018 is available on pages 72-73 in Sustainability and Annual Report 2018
Report on Green Bonds 2017 is available on pages 74-75 in Sustainability and Annual Report 2017
Report on Green Bonds 2016 is available on pages 76-77 in Sustainability and Annual Report 2016 
Report on Green Bonds 2015 is available on pages 90-91 in Sustainability and Annual Report 2015

AS Latvenergo Internal Audit opinion on fulfilment of requirements of Green Bond Framework, 30.01.2017
Moody's credit rating 03.08.2015

Updated Green Bond Framework
CICERO opinion
The Green Bond Framework

Minutes of Noteholders Meeting
Amendments to the General Terms and Conditions 24.11.2017.
New wording of the General Terms and Conditions 24.11.2017.
Final Terms as updated on 08.04.2016
Final Terms as updated on 04.06.2015
Base prospectus

Dividends

Shares

The registered share capital of Latvenergo AS is EUR 790,367,859, consisting of 790,367,859 ordinary shares with a nominal value of EUR 1 per share.


Dividend Policy

The distribution of Latvenergo AS dividends is regulated by the Republic of Latvia Law on the Medium-Term Budgetary Framework for 2022, 2023 and 2024. According to the regulation, the expected amount of dividends payable by Latvenergo AS for the use of state capital in 2022 (for the reporting year 2021) is 64% of the profit for the reporting year, but not less than EUR 70.2 million and in 2023 (for the reporting year 2022) is 64% of the profit for the reporting year, but not less than EUR 56.8 million. 

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.


Dividends paid by Latvenergo AS

Taxes

Latvenergo Group is one of the biggest taxpayers in Latvia. In 2020, the Group paid EUR 138.7 million to the state budget of Latvia. The amount of taxes paid in Lithuania and Estonia was EUR 12.6 and EUR 7.4 million respectively. In the Baltics, EUR 158.7 million was paid in taxes in total. The table below shows the taxes paid by Latvenergo Group by years and types of taxes, where taxes borne are taxes directly borne by the Group and taxes collected are taxes for which the Group acts as an intermediary, i.e. the taxes collected from consumers and employees and further transmitted to the the State.

Tax payments by Latvenergo Group (MEUR):


 2016 2017 2018 2019 2020* 2021
Taxes borne
26.7 68.7 78.9 47.5 46.1 42.0
Corporate income tax
7.9 39.7 39.5 10.4 10.6 6.8
Payroll taxes paid by the employer
16.7 17.8 19.1 18.7 19.1 19.1
Other taxes (excise, environmental, electricity, real estate taxes)
2.1 11.2 20.3 18.4 16.4 16.1
Taxes collected
 105.4 81.3 95.7 105.0 93.1 71.3
Value-added tax
69.3 45.3 71.0 82.9 70.2 48.4
Payroll taxes paid by employees
21.3 22.2 23.5 22.1 22.9 22.9
Subsidised electricity tax
14.8 13.8 1.2 0.0 0.0 0.0
TOTAL
 132.1 150.0 174.6 152.5 139.2 113.3

* from 10 Feb 2011 until 10 Jun 2020, Latvenergo Group included Latvijas elektriskie tīkli AS, with 100% interest held


 2016 2017 2018 2019 2020 2021
Taxes borne
 0.9 0.7 0.6 0.6 0.5 0.6
Corporate income tax
0.1 0.1 0.0 0.0 0.1 0.0
Payroll taxes paid by the employer
0.1 0.1 0.1 0.0 0.0 0.2
Other taxes (excise, environmental, electricity, real estate taxes)
0.7 0.5 0.5 0.6 0.4 0.4
Taxes collected
 14.2 11.5 13.2 13.8 12.1 14.6
Value-added tax
14.1 11.4 13.1 13.5 11.7 14.0
Payroll taxes paid by employees
0.1 0.1 0.1 0.3 0.4 0.6
Subsidised electricity tax
0.0 0.0 0.0 0.0 0.0 0.0
TOTAL
 15.1 12.2 13.8 14.4 12.6 15.2

2016 2017 2018 2019 2020 2021
Taxes borne
 0.2 0.3 0.2 0.3 0.3 0.2
Corporate income tax
0.1 0.1 0.1 0.1 0.1 0.0
Payroll taxes paid by the employer
0.1 0.2 0.1 0.2 0.2 0.2
Other taxes (excise, environmental, electricity, real estate taxes)
0.0 0.0 0.0 0.0 0.0 0.0
Taxes collected
 6.5 6.0 6.4 7.4 7.1 11.6
Value-added tax
6.4 5.9 6.3 7.3 7.0 11.5
Payroll taxes paid by employees
0.1 0.1 0.1 0.1 0.1 0.1
Subsidised electricity tax
0.0 0.0 0.0 0.0 0.0 0.0
TOTAL
6.7 6.3 6.6 7.7 7.4 11.8

Rating

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.


Moody's Investors Service Credit Opinion 24 January 2022

Latvenergo AS credit rating

Long-term rating Outlook Last approved
Baa2 Stable January, 2022




Latest changes
Baa2
Baa3
Baa3
Stable
Stable
Negative		 February, 2015
May, 2010
April, 2009