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.

Disclaimer

NOT TO BE RELEASED, PUBLISHED OR DISTRIBUTED IN WHOLE OR IN PART IN OR INTO OR TO ANY PERSON LOCATED IN OR RESIDENT IN SUCH COUNTRIES OR JURISDICTIONS IN WHICH IT WOULD BE UNLAWFUL OR REQUIRE MEASURES OTHER THAN THOSE REQUIRED UNDER LATVIAN LAWS, INCLUDING THE UNITED STATES, AUSTRALIA, JAPAN, CANADA, HONG KONG, SOUTH AFRICA AND SINGAPORE. THIS ANNOUNCEMENT IS ALSO NOT ADDRESSED TO RETAIL INVESTORS IN THE EUROPEAN ECONOMIC AREA.

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States of America, Australia, Japan, Canada, Hong Kong, South Africa, Singapore or any other jurisdiction, or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.

This announcement is not an offer for sale of, or a solicitation to purchase or subscribe for, any securities in the United States. The securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and the securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended. The issuer has not registered and does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States.