Eesti Energia offers retail investors €10 million worth of bonds
The state-owned energy company Eesti Energia is offering retail investors €10 million worth of bonds with a three-year maturity and a 5 percent interest rate from May 20 to May 30, following the delisting of Enefit Green from the stock exchange.
According to Eesti Energia CFO Marlen Tamm, the company will use the capital raised to finance its business operations and to develop the energy sector.
"In the long term, to lower energy prices and ensure energy security, Estonia needs a significant increase in both dispatchable and renewable electricity generation capacity, as well as storage. The bond offering will strengthen the company's capital base, which will help support the development of additional production and storage capacities, the reinforcement of the distribution network and thus the security of energy supply in the region," Tamm said.
The bonds carry a fixed annual interest rate of 5 percent, with quarterly interest payments scheduled for March 4, June 4, September 4 and December 4. The first interest payment will be made this September.
The offering is targeted at retail investors. In the event of oversubscription, the company reserves the right to prioritize former Enefit Green shareholders who held shares as of March 28.
As part of the public offering, Eesti Energia is issuing 100,000 bonds with a nominal value of €100 each, bringing the total value of the issue to €10 million.
In case of oversubscription, the company may increase the volume of the offering to up to 500,000 bonds before the end of the subscription period, raising the total value of the issue to as much as €50 million. The final size of the issuance will be determined based on investor demand.
The bonds will be listed on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange. On the bond maturity date — June 4, 2028 — Eesti Energia will repay bondholders the full nominal value of the bonds.
The bond offering follows Eesti Energia's move to bring the publicly listed Enefit Green back into the group. According to the company, the voluntary takeover bid amounted to approximately €180 million and resulted in Eesti Energia acquiring 97.2 percent of Enefit Green. The company is proceeding with the takeover of the remaining shares in exchange for monetary compensation.
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Editor: Barbara Oja, Marcus Turovski
