State-owned Eesti Energia completed its largest ever bond deal, refinancing 500 million euros worth of bonds.
The company's CFO, Andri Avila said there was more interest toward the bonds than initially expected. “It shows that investors trust Eesti Energia and hold our business to be sustainable, despite the complicated market situation due to low energy prices.”
The new bonds will last eight years, and will be used to buy back bonds which were due to expire in 2018 and 2020.
The interest rate for the new bonds is 2.384 percent per year. The bonds will be marked on the London stock exchange. 80 investors participated in the bond issue, from Scandinavia and the Baltics (combined 44 percent), Germany and Austria (20 percent), France (15 percent), the United Kingdom (10 percent) and Switzerland (4 percent).
Editor: J.M. Laats