OREANDA-NEWS. Placement of investor applications for additional issue of Latvenergo AS notes worth 30 million Euros has been concluded. The high interest among investors ensured successful placement of these additional securities, as overall demand reached more than 88 million Euros.

Latvenergo AS seized an opportunity on capital markets to implement successful placement of EUR 30,000,000 in additional notes as part of the first series of notes. Investor interest and assurance about the stability of their investment have remained high: by the end of the placement period, the overall demand reached more than 88 million Euros.

“January is usually considered a quiet, calm month, when no significant events take place; however, for Latvenergo, the year began with a successful placement of notes and with trading the notes issued at the end of the last year on the exchange. The investor community has been just as active and responsive, its high interest being the key prerequisite for placement of additional notes. To reaffirm the stable return on investment in our company, let me state that the company has ambitious plans to continue increasing its value, this year as well as in later years,” states Zane Kotane, member of the Management Board and Financial Director at Latvenergo AS.

The public offer was addressed in Latvia, Lithuania and Estonia, with purchase orders received from 46 different investors – including pension funds, asset management funds, insurance companies and banks in Latvia, Lithuania and Estonia.

The fixed income rate at discharge of the notes equalled 2.8% at the end of the placement period. Although fixed interest rates on financial markets have increased, the rate of return on the additional issue of Latvenergo AS notes was actually slightly lower compared to the first issue. This is a very positive observation because it shows that the risk premium required by investors has reduced, indicating increased trust among investment professionals in the company’s stability and continuous development. A total of 30,000 notes with a nominal value of 1000 Euros each were placed, with 15 December 2017 as the discharge date. The total value of notes following this additional issue will constitute EUR 50,000,000. The issue has been organised by SEB banka AS.The issue is being implemented as part of the Latvenergo Group’s plan for attracting borrowed capital. The funding attracted as a result of this issue of notes will be redirected towards financing the Latvenergo Group’s capital investment programme, which will include, but not be limited to, reconstruction of distribution and transmission networks and transformer substations, investment in improving voltage quality, as well as replacement of overhead lines with cable lines, thereby improving electricity supply quality and reliability for customers as well as mitigating network losses.