On 23 May 2025, the Shareholder Meeting of Latvenergo AS decided to issue debt securities (bonds) under a new public offering programme. This means that the company has been authorised to raise part of the additional funding needed by issuing bonds at times when the situation on the capital market is favourable. The decision is based on the current successful experience of Latvenergo AS bond issues and the opportunity provided by the international capital markets to raise the required funding for the next 3 years on competitive terms. According to the investment financing plans for renewable energy sources (RES) projects, it could be necessary to raise EUR 300–350 million per year over the next 3 years in the form of bonds issued on the capital markets.
The specific parameters of the bond issues will be defined during the elaboration of the issuance documents. Like the bonds issued under the previous bond offer programmes, the new bonds are not to be converted into shares, which means that Latvenergo AS is and will remain a wholly state-owned company.
The financing raised through the bond issue is planned to be channelled to the investment projects of Latvenergo Group for the development of renewable energy generation capacity, which will strengthen the energy security of Latvia by reducing electricity imports and increasing the renewable generation portfolio of Latvenergo. Capital investments of Latvenergo Group will be partly financed from the Group’s own funds and partly from borrowed capital. As previously reported, in 2024, Latvenergo AS has developed its own RES projects as well as acquired ready-to-use ones – the Group already has 14 solar farms with an installed capacity of 102 MW, and the Akmenė WPP in Lithuania (19.6 MW) has also started operations. Latvenergo AS has acquired two WPP projects – Telšiai in Lithuania (124 MW) and Laflora Energy SIA in Latvia (109 MW), as well as DSE Aizpute Solar SIA – the largest solar power plant project to date with a total capacity of 265 MW. In total, at the end of the year, there are solar and wind farms with a total capacity of almost 880 MW under design or construction.
To date, Latvenergo AS has raised EUR 400 million through bond issues under three bond programmes, and half of this financing has already been repaid within the original terms. Latvenergo Group raises funds from commercial banks, international financial institutions and through bond issues, diversifying its sources of financing in a targeted manner, ensuring favourable financing conditions and enabling the successful implementation of the Group’s strategy.
Latvenergo Group continues to actively develop renewable energy projects across the Baltic states, with the objective of reaching 2.3 GW of additional generation capacity. By the end of 2026, the RES portfolio is expected to increase by 1000 MW.
The international credit rating agency Moody’s has affirmed the Latvenergo AS investment grade credit rating at the Baa2 level with a stable outlook for the future.
Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 29 453 897
E-mail: investor.relations@latvenergo.lv
About Latvenergo
Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas, development of solar and wind parks in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas, development of solar and wind parks in Lithuania), Elektrum Next SIA (development of solar and wind parks), Laflora Energy SIA (development of wind park), DSE Aizpute Solar SIA (development of solar park), Latvijas vēja parki SIA (development of wind parks), Telšiu vejo parkas, UAB (development of wind park in Lithiania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process) and Liepājas enerģija SIA (generation and trade of thermal energy, electricity generation). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.