Irena Cirule, Trade Commissioner (Latvia)
On May 7, Latvia’s power utility Latvenergo implemented placement of seven-year green bonds in the total nominal value of EUR 50 million with a fixed annual interest rate of 0.5 percent and a yield to maturity 0.543 percent, LETA learned from the company. The total amount of the submitted purchase orders reached EUR 229.8 million.
The purchase orders were received from 24 investors, including asset management funds, insurance companies and banks in Latvia, Lithuania, Estonia, Finland and Sweden, and international financial institutions – European Bank for Reconstruction and Development and Nordic Investment Bank. “This is already the second bond program for the issuance of notes under which we are issuing green bonds, and our aim is to invest in environmentally friendly projects. The high level of investor interest in green bonds confirms Latvenergo’s strategy to further increase the use of renewable energy sources, which means more hydro, solar, and wind power. It also acknowledges society’s wish to live in a sustainable environment,” said Guntars Balcuns, Chairman of the Management Board of Latvenergo.