OREANDA-NEWS. December 18, 2012. Taking advantage of the favourable situation in capital markets, AS Latvenergo (Baa3/stable, Moody`s) has realized successful placement of notes in the amount of EUR 20,000,000 under the first series of notes.

The public announcement was made in the Republic of Latvia, in the Republic of Lithuania and in the Republic of Estonia. The initial yield to maturity range was established from SW* +2.25% to SW +2.65%. Considering huge investor interest during the placement period the yield to maturity range was decreased and determined from SW +2.05% to SW +2.25%. The total amount of the submitted purchase orders had reached more than 90 million euro, respectively, 4.6 times exceeding the planned issue amount. The purchase orders were received from more than 50 investors, including pension funds, asset management funds, insurance companies and banks in Latvia, Lithuania and Estonia.

According to the results of the placement of notes, the terms of the first series of notes are the following:

Aggregate principal amount of the series of notes: 20 000 000 EUR

Amount of the notes: 20 000

Annual interest rate (coupon): Fixed, 2.8% annually

Issue price: 998.383 EUR

Final yield to maturity: 2.8353%

Issue date: 19 December 2012

Maturity date: 15 December 2017

The notes will be issued under AS Latvenergo LVL 50 million (or its equivalent in EUR) programme for the issuance of notes. The arranger of the issue of notes – AS SEB banka.

The notes will be included in the official list of NASDAQ OMX Riga.

The notes issue is realized within the Latvenergo Group’s borrowing plans and the net proceeds from the issue of the notes will be used for financing Latvenergo Group`s capital expenditures programme, including but not limited to financing of renewal of transmission and distribution lines, reconstruction of transformer substations, investments in voltage quality improvement, as well as replacement of overhead lines with cable lines to improve the quality and reliability of electricity supply to customers and to reduce the network losses.

*SW – a five-year interest rate swap