Listing of green bonds of JSC Augstsprieguma tīkls on Baltic Securities List of Nasdaq Riga has commenced

Announcements

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On Monday, November 29, the listing of green bonds issued by the Latvian transmission system operator JSC Augstsprieguma tīkls (AST) on the JSC Nasdaq Riga Baltic Debt Securities commenced. AST is the first Baltic transmission system operator to issue green bonds.

"The €100 million green bond issue is an important event not only for the state joint stock company Augstsprieguma tīkls and the way the company plans to achieve its goals, but also in line with the government's smart re-industrialisation. We want to attract more investments and help our companies grow, especially in the export sector. To do this, you need capital. Issuance of bonds by Augstsprieguma tīkls is helping to develop our capital markets. And the more developed and liquid the capital market, the easier it is to access additional capital. Today we are celebrating not only the success of Augstsprieguma tīkls in reaching the high standards set by the stock exchange for the issuance of securities, but we are also helping to develop the equity market, which in turn contributes to the development of the entire economy," said Prime Minister Krišjānis Kariņš at the bell-ringing ceremony of the stock exchange.

In his address, Finance Minister Janis Reirs stressed the importance of green bonds for important investment projects and the advantages of the capital market compared to other sources of financing: "AST's green bond issue is a key step towards the implementation of energy projects of national interest and another important step towards the Green Deal. Issuing bonds allows for raising of funds on the most favourable terms, with the issuer managing the process. And this would not be possible without improvements in corporate governance and a carefully developed strategy."

Before the bell-ringing ceremony, AST Chairperson of the Board Gunta Jēkabsone said: "I am pleased with the work of my team in going through all the preparatory stages leading up to the listing of the company's bonds on the stock exchange, ensuring the necessary transparency and improvements in corporate governance. We are the first transmission system operator in the Baltics to issue green bonds, and the demand for them was twice as high as the supply. The proceeds enabled us to refinance the loan, and shortly after the issue, S&P Global Ratings upgraded AST's credit rating to A-, the highest among Latvian companies. And it is also a signal that allows AST to plan significant capital investments to connect large-scale renewable energy producers to the Latvian grid and to synchronise the Baltic electricity grids with the European grids."

As already reported, on October 13 AST completed a EUR 100 million placement of 5.25-year green bonds with a fixed annual interest rate (coupon) of 0.5% and a yield of 0.527%, the first of a total planned EUR 160 million bond issue by AST. The bond purchase orders were received from more than 20 investors, including pension funds, asset management funds, insurance companies and banks in the Baltics and Nordic countries, as well as from international financial institutions – the European Bank for Reconstruction and Development and the Nordic Investment Bank. By issuing the bonds, AST has refinanced its previous borrowings, which was one of the preconditions for the international credit rating agency S&P Global Ratings to upgrade on November 12 AST's long-term credit rating from BBB+ to A- with a stable outlook.

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