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Latvenergo AS attracts funding from Nordic Investment Bank
Latvenergo AS has attracted loan from Nordic Investment Bank for a total amount of EUR 100 million with a repayment term of 15 years.
Riga, 2019-12-16 15:24 CET --
The stable financial results of Latvenergo Group and the investment grade credit rating (Baa2, stable) provide the opportunity to attract the funding on favorable terms and conditions. Latvenergo AS cooperates with Nordic Investment Bank already for more than 15 years and highly appreciates the confidence shown by the bank, offering the long-term financing for the Group’s investment programme and continuing mutually beneficial cooperation. Attracted financing will be invested in network modernization thus ensuring high quality of network services, technical indicators and operational reliability. Targeted investments in network efficiency during last years have been beneficial to the whole society allowing to reduce electricity tariffs as from 2020 onwards.
Latvenergo AS raises funding on a regular basis in order to ensure timely provision of funds for the financing of capital investments. The previous fund rising was held in December of 2018 in form of commercial bank loans in the total amount of EUR 240 million, and since 2012 Latvenergo AS has been issuing bonds. So far, Latvenergo AS has raised EUR 205 million through the issue of bonds, including green bonds in the amount of EUR 100 million.
Latvenergo Group has attracted funding from commercial banks, foreign investment banks and by issuing bonds thus diversifying the sources of funding, ensuring favorable financing terms and conditions and allowing successful implementation of the Group’s strategy. Latvenergo Group capital investments are planned on average EUR 150 million in a year over the next three years and their implementation is partly financed by own funds and partly by the borrowed capital.
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Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade, electricity distribution services and lease of transmission system assets. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and seven subsidiaries - Latvijas elektriskie tīkli AS (lease of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.