Latvenergo AS implements placement of additional green bonds
April 8, 2016
Disclaimer
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO SUCH COUNTRIES OR JURISDICTIONS IN WHICH IT WOULD BE UNLAWFUL OR REQUIRE MEASURES OTHER THAN THOSE REQUIRED UNDER LATVIAN LAWS, INCLUDING THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, HONG KONG AND JAPAN.
On 7 April 2016 Latvenergo AS (Baa2/stable, Moody`s) successfully implemented placement of second tranche of green bonds in the total nominal value of EUR 25 million under the first series of notes of second programme for the issuance of notes of Latvenergo AS.
The public announcement was made in the Republic of Latvia, in the Republic of Lithuania and in the Republic of Estonia. The initial yield to maturity range was established from SW* +1.30% to SW +1.55%. Considering huge investor interest during the placement period the yield to maturity range was decreased and determined from SW +1.20% to SW +1.45%. The total amount of the submitted purchase orders had reached EUR 146.1 million, respectively, 5.8 times exceeding the planned issue amount. The purchase orders were received from 21 investor, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, France, Austria and Finland.
The terms of the additional issue of the first series of notes under the second programme for the issuance of notes of Latvenergo AS are the following:
Serial number of series of notes: 1
Tranche: 2
Principal amount of the issue:EUR 25 million
Amount of the notes:25 000
Nominal amount of the note:EUR 1 000
Annual interest rate (coupon): fixed, 1.9%
Issue price:EUR 1 050.658
Final yield to maturity: 1.3107%
Issue date: 14 April 2016
Maturity date: 10 June 2022
Rating (Moody’s): Baa2, stable
Use of Proceeds: Financing and refinancing of the eligible projects according to the Latvenergo AS Green Bond Framework
Aggregate principal amount of the first series of notes: EUR 100 million
In accordance with the Final Terms of the second tranche of the first series of notes temporary ISIN code is LV0010801775. Upon admission of the notes to the regulated market the notes will be consolidated and form a single series with the notes in the amount of EUR 75 million issued on 10 June 2015 and will have a common ISIN code LV0000801777.
The issue of notes is being implemented under Latvenergo AS EUR 100 million second programme for the issuance of notes. The arranger of the issue of notes – SEB banka AS.
The funds raised will be channelled to green-minded projects financed or part-financed by Latvenergo Group that concern generation as well as distribution and transmission network assets in accordance with Latvenergo AS Green Bond Framework, whereby the Center for International Climate and Environmental Research - Oslo has issued a second-party opinion regarding the suitability of the notes as an investment in connection with certain environmental and sustainability criteria. The Center for International Climate and Environmental Research - Oslo has assigned to the Latvenergo AS Green Bond Framework the Dark Green shading, which is the highest possible assessment in the field of environment. Information on use of proceeds from green bonds issued on 10 June 2015 will be publicly available on 20 April 2016 as a part of Latvenergo Group Sustainability Report 2015.
* an interpolated interest rate swap derived from a six-year interest rate swap and a seven-year interest rate swap (fixed at 0.1107% level)
Disclaimer
This communication is not an offer to sell or a solicitation of an offer to buy the Notes issued under the Programme in any jurisdiction to any person to whom it is unlawful to make such an offer or solicitation in such jurisdiction. Latvenergo AS or its representatives and SEB banka AS do not accept any legal responsibility for any such violations, whether or not a prospective purchaser of the Notes is aware of such restrictions. The Notes issued under the Programme have not been and will not be registered in accordance with the U.S. Securities Act of 1933 (the “Securities Act”) or under the securities laws of any state of the United States of America and accordingly, they may not be offered, sold, resold, granted, delivered, allotted, taken up, transferred or renounced, directly or indirectly, in or into the United States of America, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any securities laws of any state of the United States of America.