⚡️ Latvenergo Places First EU Green Bond at 3.612%

⚡️ Latvenergo Places First EU Green Bond at 3.612%

Latvenergo has completed its first European green bond placement, raising €400 million with a fixed coupon of 3.612%. The bonds were issued on 6 November and attracted demand totaling €2.2 billion, more than 5.5 times the target size. The issue is rated Baa2 by Moody’s and is listed on the regulated markets of the Luxembourg Stock Exchange and will be listed on Nasdaq Riga. More than half of the allocation went to investors with a sustainability-focused mandate.

Investors from the United Kingdom and Ireland accounted for 32% of allocations, followed by Germany–Austria–Switzerland (22%), the Nordic region (16%), France (10%), other European markets (9%), the Baltics (6%), and other regions (5%). By investor type, 71% were asset managers, 10% official institutions and central banks, 10% hedge funds, 7% banks and private banks, and 2% insurers and pension funds.

Context:

Latvenergo is Latvia’s state-owned energy group and the country’s main producer of electricity and thermal energy. The placement adds the Baltics to the growing list of EU issuers using green bonds to finance taxonomy-aligned projects. The 3.612% coupon reflects current conditions in European fixed-income markets and the regional risk premium on the EU’s eastern flank. Investors will track how the proceeds flow into renewable and grid-related projects and whether additional issuances follow in 2026.

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