On October 30, the board of "Latvenergo" approved the basic prospectus for the issuance program of medium-term eurobonds - debt securities - amounting to €1 billion, according to the company's announcement to the "Nasdaq Riga" exchange.
On the same day, the financial sector supervisory authority of Luxembourg, the "Commission de Surveillance du Secteur Financier," approved the prospectus as compliant with European Union standards. Bonds will be issued in series, and each series may have multiple tranches. The specific terms of each tranche will be approved by "Latvenergo" separately.
Eurobonds are debt securities through which companies or governments borrow money from investors worldwide. Simply put, it is like an international loan, but structured as bonds.
"BNP Paribas" and "J.P. Morgan" have been authorized to organize and distribute the issuance of "Latvenergo," while "Skandinaviska Enskilda Banken AB" and "Luminor Bank" will be the bond distributors.
The funds raised from the issuance are planned to be directed towards electricity production using solar photovoltaics, wind, and hydro energy, for the distribution and storage of electricity, and for the construction of infrastructure for low-carbon transportation and public transport.
As reported, the turnover of the "Latvenergo" group last year amounted to €1.704 billion, with a profit of €273.65 million; the turnover of the parent company was €1.057 billion, with a profit of €265.575 million.
"Latvenergo" is engaged in the production and trading of electricity and heat, as well as trading in natural gas and providing electricity distribution services. The bonds of "Latvenergo" are listed on the "Nasdaq Riga" exchange in the list of debt securities.
Leave a comment