Latvenergo launches €1 billion EU Green Bond programme

Latvenergo has approved a €1 billion medium-term Eurobond framework, with the base prospectus validated by Luxembourg’s CSSF under EU rules. The bonds will be issued in several tranches and distributed by BNP Paribas, J.P. Morgan, SEB and Luminor Bank. Proceeds are intended for solar, wind and hydropower generation, electricity storage and low-emission transport infrastructure. The programme has received a pre-issuance review from Sustainable Fitch, confirming alignment with the ICMA Green Bond Principles and the EU Green Bond Regulation.

Context: While officially framed as a climate-finance initiative, the bond issue also comes amid growing fiscal pressure: the government has demanded 90 % of Latvenergo’s profits as dividends and plans to use part of those proceeds to finance the buy-out of Telia’s stake in Tet. That makes this “green” bond not only an environmental move but also a mechanism to sustain state revenue and strategic acquisitions.