Eesti Energia Raises EUR 400m with Inaugural Green Hybrid Bond, Oversubscribed Fourfold
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- EUR 400M Green Hybrid Bond: Raised funds to support green energy projects.
- Fourfold Oversubscription: Investor demand exceeded 1.6 billion euros.
- Global Investor Confidence: Nearly 200 international investors participated.
Eesti Energia successfully issued its inaugural EUR 400 million green hybrid bond, listed on the London Stock Exchange. The raised funds will be invested in ongoing and planned green energy projects, strengthening Eesti Energia’s financial position.
Investor Demand:
The bond offer was oversubscribed fourfold, attracting more than 1.6 billion euros from nearly 200 investors globally, with two-thirds from Europe, including Estonia.
“The strong interest of international investors shows that Eesti Energia Group and our strategy towards a greener future is credible and ambitious,” said Marlen Tamm, Member of the Management Board and CFO of Eesti Energia Group. “The fourfold oversubscription of green hybrid bonds confirms that the company’s plans are sustainable and promising.”
Favorable Market Conditions:
The high demand allowed Eesti Energia to offer bonds at a lower interest rate. “We tightened pricing by more than 50bps during the bookbuild process, closing the offer at a coupon rate of 7.875%, which is comparable to other similar bond offers both internationally and in Estonia,” added Tamm.
Green Bond Classification:
This is the first green hybrid bond issued in the Baltics offered internationally and listed on the London Stock Exchange. A green hybrid bond ensures that the capital raised is invested solely in green projects. The bond received 50% equity content from Moody’s and S&P and is fully equity accounted under IFRS.
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Validation and Support:
Eesti Energia’s Green Finance Framework was validated by ISS Corporate Solutions, which issued a Second Party Opinion on compliance with green criteria. The success of this bond confirms Eesti Energia’s commitment to a greener future.
“We are very happy with the result and strong statement of confidence from the international investor community,” Tamm concluded.
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July 10, 2024 at 02:26PM