Announcements

Latvenergo AS has attracted loans from several banks for a total amount of EUR 240 million with a repayment term of 7 and 10 years. Latvenergo AS raises capital on a regular basis in order to ensure timely provision of funds for the financing of capital investments.

SEB banka AS (the amount of loan – EUR 130 million), Swedbank AS (EUR 50 million), OP Corporate Bank plc Latvia Branch (EUR 40 million) and Citadele banka AS (EUR 20 million) have been announced as the winners of the procurement.

The stable financial results of Latvenergo Group and the investment grade credit rating (Baa2, stable) provide the opportunity to attract funding on favourable borrowing conditions. Latvenergo AS greatly appreciates the confidence shown by Latvian commercial banks, offering long-term financing for the Group’s investment programme and continuing mutually beneficial cooperation.

Latvenergo AS raises outside capital on a regular basis in order to ensure timely provision of funds for the financing of capital investments. The previous procurement for attracting borrowed capital in the form of commercial bank loans in the amount of EUR 150 million was held in 2014, and since 2012 Latvenergo AS has been issuing bonds. The most recent green bonds in the amount of EUR 100 million were issued in 2015 – 2016.

Latvenergo Group has attracted funding from commercial banks, foreign investment banks and by issuing bonds. The sources of attraction of external financing are purposefully diversified, thus ensuring wide opportunities for raising funds and favourable financing conditions, while allowing successful implementation of the Group’s strategy. The average amount of the capital investments planned is between EUR 200 and 250 million a year, and their implementation is partly financed by the Group from its own funds and partly from the borrowed capital.

Latvenergo Group makes a significant contribution to the Latvian economy and is one of the largest tax payers, dividend payers and employers in the country. The distribution of dividends in 2017 amounted to EUR 156.4 million, which is the largest amount of dividends over the last five years. Latvenergo AS is the first company in the Baltics to receive the award for Best Investor Relations in the Baltics among Bond Issuers from Nasdaq Baltic Exchange.

Latvenergo Group has been holding the title of the most valuable company in Latvia for more than 10 years and is one of the largest power supply providers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets.