EBRD invests in Latvenergo green bonds

By Axel  Reiserer

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·        EBRD becomes an investor in Latvenergo’s €50 million green bond

·        First tranche of €200 million sustainability programme

·        State-owned utility plans to invest in modernisation of network and upgrade of assets

The European Bank for Reconstruction and Development (EBRD) supported the €50 million green bond issuance by Latvenergo AS, Latvia’s state-owned energy utility, by acting as an anchor investor.

This was the first tranche under a €200 million green bond programme which aims to finance an ambitious investment plan in projects that promote the transition to a sustainable, modern electricity network and to upgrade Latvia’s hydropower plants.

The proceeds raised from the bond issuance will be used to support the integration of more renewable sources into Latvia’s electricity network, especially small and medium-sized solar and wind projects as well as increasing the reliability of the country’s energy supply.

The green bond is listed on the Nasdaq Riga exchange, an EU-regulated platform that is part of the Sustainable Stock Exchanges Initiative, a platform aimed at enhancing corporate transparency on environmental, social and corporate governance (ESG) issues.

The bond has received a “dark green” rating – the most stringent category – under the Green Bond Principles  from the Centre for International Climate and Environmental Research, confirming that it corresponds to a long-term vision of a low-carbon and climate-resilient future.

The EBRD’s participation in the company’s green bond issuance contributed to its success. The issuance attracted strong interest from local Baltic and Nordic investors, as well as international financial institutions, with bids of more than €200 million reflecting investors’ trust in Latvenergo’s sustainable business. It was the company’s second green bond issuance, building on a first in 2015.

Energy security and energy efficiency are among the EBRD’s top priorities in Latvia. To date, the Bank has invested more than €794 million in all sectors of the Latvian economy

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