Ignitis Group successfully distributed the issue of bonds
Despite the uncertainty in the financial markets, investors are positive about Ignitis Group's prospects for developing sustainable energy projects in Lithuania and the region. On 14 May Ignitis Group successfully distributed EUR 300 million issue of bonds. The annual coupon of the 10-year senior unsecured bonds bonds will be 2.00 %, the bonds were placed at 2.148 % yield.
The bonds have been acquired by 57 investors. Most of the company's bonds were purchased by institutional investors from Germany, United Kingdom and Lithuania: banks, investment and pension funds and insurance companies.
“The interest shown by Lithuanian and foreign investors for this issue of bonds shows confidence and support for business priorities of Ignitis Group. Financial market welcomes focus on sustainable development and decarbonisation of energy sector which is laid down in the Group's strategy. This is another important assessment that we are on the right track,” – says Darius Maikštėnas, Chairman of the Board and CEO of Ignitis Group.
Ignitis Group intends to use the funds raised for further financing of the investments in green energy, enhancement of efficiency of power distribution grid, as well as for refinancing of existing indebtedness.
Ignitis Group has mandated BNP Paribas, Citi and J.P. Morgan as Joint Lead Managers and Joint Bookrunners and Luminor as Co-manager. Bond issue is to be listed on the Luxembourg and the Nasdaq Vilnius Stock Exchanges.
On 12 May the international credit rating agency S&P Global Ratings, after the annual credit ratings review, affirmed its BBB+ ratings for the Company.
In 2017 and 2018 the Company successfully placed two issues of Green Bonds. The yield of issued 10-year senior unsecured bonds was 2.066 % in 2018 and 2.193 % in 2017.
