Moody’s rates Latvenergo green bonds GB1

Moody's Investors Service said it assigned a green bond assessment of GB1 (Excellent) to the Latvenergo AS’ second program for the issuance of notes, in the combined amount of €100 million.

The issuance consists of two tranches: one that came to market on June 10, 2015 in the amount of €75 million (1.9% senior unsecured fixed-rate notes due 2022), and a second that came to market on April 14, 2016 in the amount of €25 million (1.9% senior unsecured fixed-rate notes due 2022).

The entire proceeds, pursuant to Latvenergo's Green Bond Framework, have been or are intended to finance and refinance qualifying environmentally eligible projects that target: (A) Mitigation of climate change, including investments in low-carbon and clean technologies, such as renewable energy and energy efficiency projects; (b) environmental preservation, including flood protection projects; and (c) projects related to a sustainable environment, which will account for up to 10% of the issued amount.

Moody’s said Latvenergo's well-defined organization and decision-making process, transparent management of proceeds, and effective reporting and disclosure practices, that are evaluated to reflect, in particular, commitments to expand impact disclosures in future reporting, serve as additional factors supporting the assignment of the GB1 assessment.

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