News

Continuing Latvenergo AS’s successful activity in the capital market, the placement of the second eurobond tranche in the amount of EUR 300 million has been completed within fourth bond programme, which is also the third bond programme with green bonds. 7-year financing with a 1,3% fixed interest rate has been raised in the European green bonds format, in accordance with internationally recognised sustainability standards. Total investor interest exceeded EUR 2 billion before the final price was set.

Latvenergo AS placed 7-year green Eurobonds in the amount of EUR 300 million with a yield of 1.3%. Total investor interest exceeded EUR 2 billion before the final price was set, while the highest demand during the placement was more than EUR 3 billion. Thus, the initial interest rate was reduced from 1.75% to 1.3%, the final yield and coupon of the bonds - 4.162%.

The funds raised through the European green bonds issue will be allocated to Latvenergo Group investment projects for the development of renewable energy generation capacity to strengthen Latvia’s energy security by reducing electricity imports and increasing Latvenergo renewable generation portfolio. Latvenergo Group continues to actively develop renewable energy projects throughout the Baltics – the total capacity of the approved new wind and solar power plants is 1,140 MW, whereof power plants with an installed capacity of 828 MW had commenced electricity generation by the end of March 2026, while the forecast for increase of the generating plants capacity is up to 1,000 MW by the end of 2026, and the remaining power plants will commence operations in 2027. In addition, Latvenergo also develops battery energy storage systems (BESS) – 8 BESS with a combined capacity of 194 MW and storage capacity of 463 MWh are either under construction or have already been built in total. According to the European green bonds factsheet, the financing raised from the bonds may be allocated to the following economic activities:

• solar and wind energy generation projects;
• modernisation of hydroelectric power plants;
• energy storage solutions;
• development of electricity distribution infrastructure;
• as well as the expansion of the electric vehicle charging network.

As reported previously, on 30 October 2025, the Management Board of Latvenergo AS approved the base prospectus for Latvenergo AS medium-term eurobond programme, and it has been approved as compliant with the applicable regulations by the competent authority of the Grand Duchy of Luxembourg, Commission de Surveillance du Secteur Financier. The bonds are issued as needed, in several tranches, without exceeding the amount specified in the prospectus – up to EUR 1,000,000,000.

The first tranche within this programme – in the amount of EUR 400 million with a 5-year maturity – was issued on 13 November 2025, with more than 140 investors participating, and total demand before final pricing exceeded the target amount by 5.5 times, reaching EUR 2.2 billion, with a coupon rate of 3.612%. More than half of the bonds were allocated to sustainability-oriented investors.

The bonds are not intended to be converted into shares, meaning that Latvenergo AS is and will remain a fully state-owned company.

Latvenergo AS has authorised BNP PARIBAS and J.P. Morgan SE as global coordinators and joint bookrunners of the issue, as well as Skandinaviska Enskilda Banken AB (publ) and Luminor Bank AS as joint bookrunners of the issue.

The international credit rating agency Moody’s has affirmed Latvenergo AS investment-grade credit rating at Baa2 with a stable outlook.