Estonian state-owned energy group Eesti Energia on Tuesday redeemed €152 million worth of bonds, as a result of which the company's debt along with interest costs related to the servicing of the debt decreased.
Eesti Energia CFO Andri Avila said in a press release that the bond was redeemed in connection with its maturing, and resources set aside by the company for this purpose were used for redemption.
"With bonds, it is possible to either redeem or refinance them," Avila explained. "In 2015, we refinanced €248 million of the bond maturing in 2018. This essentially means that we extended the maturity of this bond until 2023. Today we redeemed the remaining €152 million of this bonds using financial resources. Now the entire bond of 2018 maturity issued in 2012 and increased to €400 million in 2014 has been redeemed to investors."
Interest totalling €6.5 million was paid per year on this bond. As a result of the redemption, Eesti Energia's outstanding debt declined from €920 million to €769 million.
Eesti Energia bonds are listed on the London Stock Exchange.
Editor: Aili Vahtla