Latvenergo AS is planning to continue issuing bonds on the Baltic market
October 10, 2019
On 9 October 2019, the shareholder meeting of Latvenergo AS decided on the issuance of debt securities (bonds) under a new offer programme for the total amount in nominal value of up to 200 million EUR. The decision is based on the successful previous experience of issuance of the bonds by Latvenergo AS and the opportunity provided by the capital market to continue the successful diversification of sources of attraction of funds of Latvenergo Group by attracting funding on favourable terms.
Specific parameters for bond issuance will be defined during the development of issuance documents. Like the bonds issued under previous bond offer programmes, the new bonds are not intended to be converted into shares, which means that Latvenergo AS is and will fully remain a state-owned company. The issued bonds are expected to be included on the list of Nasdaq Riga AS Baltic debt securities.
The funding raised with the bond issuance will be channelled to Latvenergo Group’s investment projects in generation and distribution assets. Capital investments of Latvenergo Group are planned at the level of 150 million EUR on average over the next three years, and their implementation is partly financed by the Group itself from its own funds and partly from borrowed capital.
By now, Latvenergo AS has attracted 205 million EUR by issuing bonds within two bond programmes, including green bonds for 100 million EUR.