OREANDA-NEWS. January 31, 2013. Latvenergo AS (Baa3/stable, Moody’s) implemented successful placement of notes in the amount of EUR 30,000,000 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 yield to maturity range was determined from SW +1.80% to SW +2.10%. The total amount of the submitted purchase orders had reached more than 88 million euro, respectively, almost 3 times exceeding the planned additional issue amount. The purchase orders were received from 46 investors, including pension funds, asset management funds, insurance companies and banks in Latvia, Lithuania and Estonia.

The terms of the additional issue of the first series of notes are the following:

Principal amount of the additional issue:

30,000,000 EUR

Amount of the additional notes:

30,000

Nominal amount of the note:

1,000 EUR

Annual interest rate (coupon):

fixed, 2.8%

Issue price:

1003.187 EUR

Final yield to maturity:

2.8%

Issue date:

30 January 2013

Maturity date:

15 December 2017

Aggregate principal amount of the series of notes:

50,000,000 EUR

In accordance with the final terms of the additional issue of the first series of notes temporary ISIN code is LV0010801098. Upon admission of the notes to the regulated market the notes will be consolidated and form a single series with the EUR 20,000,000 notes issued on 19 December 2012 and will have a common ISIN code LV0000801090.

The issue of notes is being implemented under Latvenergo AS LVL 50 million (or its equivalent in EUR) programme for the issuance of notes. The arranger of the issue of notes -SEB banka AS.

The issue of notes 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.