OREANDA-NEWS. Latvenergo AS (Baa3/stable, Moody`s) implemented placement of seven-year notes in the total nominal value of EUR 20 million.

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* +1.75% to SW +2.05%. The total amount of the submitted purchase orders had reached EUR 42.14 million, respectively, more than 2 times exceeding the planned issue amount. The purchase orders were received from 25 investors, including pension funds, asset management funds, insurance companies and banks in Latvia, Lithuania and Estonia.

The terms of the issue of the new series of notes are the following:

Serial number of series of notes: 2

Principal amount of the issue: EUR 20,000,000

Amount of the notes: 20,000

Nominal amount of the note: EUR 1,000

Annual interest rate (coupon): fixed, 2.8%

Issue price: EUR 994.475

Final yield to maturity: 2.8883%

Issue date: 22 May 2013

Maturity date: 22 May 2020

ISIN code: LV0000801165/

The notes will be listed on Nasdaq OMX Riga AS.

The issue of notes is being implemented under Latvenergo AS LVL 85 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 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.

* a seven-year interest rate swap