Lietuvos Energija is preparing for the second issue of green bonds

 

Following a successfully placed first green bond issue last year, Lietuvos Energija is in the process of preparation for a repeated issue. Today, The Board of Lietuvos Energija approved the increase of the Company’s Euro medium term note programme up to EUR 1.5 bn, the second issue of green bonds, and confirmed an updated base prospectus. A EUR-denominated 300-500 million, 7-12 year senior unsecured non-convertible, with a nominal value being no less than EUR 100 000, green bond offering will be public and launched subject to market conditions. Investor meetings in Europe will commence on 25 June.

 

Lietuvos Energija has mandated BNP Paribas, J. P. Morgan, and SEB as Joint Lead Managers and Joint Bookrunners. Green bond issue will be listed on the Luxembourg and the Nasdaq Vilnius Stock Exchanges.

 

The Lietuvos Energija Group is expecting to once again successfully raise funding on the capital market taking advantage of the low interest rates in the market. The Company group retained a highly attractive credit rating; following an annual review, a credit rating Standard & Poor’s assigned Lietuvos Energija the same credit rating as in the previous year. The assigned BBB+ credit rating is the highest among the peer companies in the Baltic States and second best with respect to the peers in the Central and Eastern Europe.   

 

“We are once again entering the green bond market, as we are seeking to take advantage of the overall favourable conditions to diversify our debt portfolio and boost the visibility among investors. The strategic development trends that we have recently announced, one of the major of which is the green energy development undoubtedly enhances our attractiveness with respect of domestic and foreign investors,” says Darius Maikštėnas, Chairman of the Board and the CEO of Lietuvos Energija.

 

The first green bond issue was successfully distributed in July 2017. Then Lietuvos Energija borrowed EUR 300 million at particularly favourable terms and for a period of 10 years. Lietuvos Energija intends to use the proceeds from the issue to finance its investment in wind energy, enhancement of efficiency of the power distribution grid, as well as the projects of energy production from waste and biomass.

 

Lietuvos Energija undertook to use the funds attracted through the green bonds issue to finance only the investments related to green energy projects. The Green Bond Framework programme implemented by the Lietuvos Energija Group was awarded the highest “shade of green” by the independent Nordic Environmental Institute Cicero and the Swedish Environmental Research Institute.

 

The base prospectus will be published on the websites of Lietuvos Energija, Luxembourg Stock Exchange and Nasdaq OMX Vilnius: www.le.lt and www.bourse.lu, www.nasdaqbaltic.com.