Latvenergo AS implements placement of 5-year green bonds
April 28, 2022
NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED IN OR RESIDENT IN SUCH COUNTRIES OR JURISDICTIONS IN WHICH IT WOULD BE UNLAWFUL OR REQUIRE MEASURES OTHER THAN THOSE REQUIRED UNDER LATVIAN LAWS, INCLUDING THE UNITED STATES, AUSTRALIA, JAPAN, CANADA, HONG KONG, SINGAPORE, RUSSIAN FEDERATION AND REPUBLIC OF BELARUS. THIS ANNOUNCEMENT IS ALSO NOT ADDRESSED TO RETAIL INVESTORS IN THE EUROPEAN ECONOMIC AREA.
Today, on 28 April 2022 Latvenergo AS (Baa2/stable, Moody`s) implemented a placement of five-year green bonds in total nominal value of EUR 100 million with a fixed annual interest rate and a yield to maturity of 2.42% (final terms of issuance of notes attached).
The total amount of the submitted purchase orders reached more than EUR 160 million. The purchase orders were received from 17 investors, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, Finland, Sweden and Austria, and international financial institutions – European Bank for Reconstruction and Development and Nordic Investment Bank.
"Currently, the energy sector is undergoing significant changes throughout Europe, and it is very important that investors, even in such changing market environment, show high confidence in the growth direction chosen in Latvenergo's strategy. Many thanks to investors for their interest in Latvenergo's green bonds," says Guntars Baļčūns, Chief Financial Officer of Latvenergo AS.
It is intended that the notes will be listed on Nasdaq Riga AS.
The issuance of notes is being implemented under Latvenergo AS EUR 200 million third programme for the issuance of notes. The arrangers of the issuance are Luminor Bank AS un Swedbank AB (publ). Legal advice was provided by COBALT.
The proceeds from the issuance of notes will be allocated to environment-friendly investment projects in accordance with Latvenergo AS Green Bond Framework, which has received the Dark green shading issued by the independent research center CICERO Shades of Green. This is the highest category shading in the CICERO’s methodology. That indicates the compliance of the planned projects with long-term environmental protection and climate change mitigation objectives, as well as good governance and transparency.
The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America, Australia, Japan, Canada, Hong Kong, Singapore, Russian Federation, Republic of Belarus or any other jurisdiction, or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.
This announcement is not an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the United States. The securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and the securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended. The issuer has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.
This announcement is also not an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the Russian Federation and Republic of Belarus. The securities may not be sold to any Russian or Belarusian national or natural person residing in Russia or Belarus or any legal person, entity or body established in Russia or Belarus.