Latvian TSO's "Augstsprieguma tīkls" Green Bonds oversubscribed more than 2 times by investor community
On October 13, Latvian TSO's "Augstsprieguma tīkls" (AST) made a successful debut in the capital markets by issuing a 5.25-year Green Bond in the amount of EUR 100 million, which is the first issue under the first AST bond issue programme of EUR 160 million. The notes were issued at a fixed annual interest rate (coupon) of 0.5% and yield 0.527%. This bond issue attracted significant interest from the investor community and was oversubscribed more than 2 times. AST becomes the first Baltic transmission system operator to issue a green bond.
“Bond purchase orders were received from more than 20 investors, including pension funds, asset management funds, insurance companies and banks in Baltic States and Nordics, as well as from international financial institutions – the European Bank for Reconstruction and Development and the Nordic Investment Bank. The wide interest from various investors in the AST's green bonds is great news, which makes us optimistic about refinancing the investments made in previous years as well as to plan the future capital investments. The raised funds from the first issue will be allocated to refinancing the Kurzeme Ring 3rd stage, CHP-2 to Riga HPP and Latvia - Estonia 3rd Interconnection infrastructure projects," says Gunta Jēkabsone, AST Chairperson of the Management Board.
With the transaction, AST becomes the first Baltic transmission system operator to issue a green bond. It is also the first time the company has approached the capital market to raise funds. The successful placement is in line with AST’s mission to ensure continuous, secure, and sustainably efficient electricity transmission throughout Latvia. The issue will also facilitate transition towards zero emission power system and will contribute to Baltic market development.
Luminor Bank acted as the Sole Lead Manager and Green Structuring Advisor of this bond issuance. Legal advice in connection with the issuance of bonds was provided by COBALT.
Announcement of the bond listing and the terms for the issuance of Notes can be viewed here.
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