Latvenergo AS issued green bonds in the amount of EUR 25 million
April 15, 2016
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 14 April 2016 Latvenergo AS (Baa2/stable, Moody`s) under the first series of notes issued additional green bonds in the total nominal value of EUR 25 millionwith a maturity date of 10 June 2022, a fixed annual interest rate (coupon) of 1.9%, a yield of 1.3107% and an issue price of EUR 1050,658. Bonds are rated Baa2/stable byMoody’s. The placement was implemented on 7 April this year. The total amount of the submitted purchase orders at the end of the placement period had reached 146.1 million euros, thereby 5.8 times exceeding the planned issue amount. Taking into consideration the great interest of investors, the lower and upper limit of spread range during the placement period was reduced by 0.10 percentage points, by fixing the spread at the lowest limit of 1.2% at the end of the placement period. 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 transaction was shared by 16 investors, few of them purchased Latvenergo AS bonds in the primary market for the first time.
The allocation by investor type and geography is provided below:
The bonds are issued under Latvenergo AS EUR 100 million second programme for the issuance of notes and upon admission of the bonds to the regulated market the bonds will be consolidated and form a single series with the bonds in the amount of EUR 75 million issued on 10 June 2015 and will have a common ISIN code LV0000801777. With issue of bonds in the nominal amount of 25 million EUR on 14 April of this year Latvenergo AS has successfully issued green bonds in the amount of 100 million euros within the framework of the entire second programme for the issuance of notes.
Guntars Baļčūns, Chief Financial Officer of Latvenergo AS: “In order to ensure that issue of bonds is successful, not only a favourable situation in financial markets has great significance, but also ambitions to develop the best offer – in the case with Latvenergo these are green bonds, as we were one of the first in the Eastern Europe to issue them. Today I am pleased with our accomplishments – the record high investor interest and fixed low final yield of bonds is a proof of our successful operations as well as investors’ interest to invest in green projects.”
The funds raised from the issued bonds 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 bonds as an investment in connection with certain environmental and sustainability criteria. Information on the use of proceeds from green bonds issued in June 2015 will be available in the Latvenergo Group Sustainability Report 2015, which will be published on 20 April 2016.
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.