Today, on 25 April, Latvenergo AS has announced procurement for conclusion of loan agreements with the banks for the total amount up to EUR 150 million.

The subject of the procurement is divided into two procurement parts – the first procurement part is for conclusion of the loan agreement up to EUR 100 million with 5 year repayment term with an option to extend the loan repayment term by 2 years and the second procurement part is for conclusion of  the loan agreement up to EUR 50 million with 7 year loan repayment term.     

Attraction of loans is organized within the borrowing plans and is intended for financing the investment programme of Latvenergo Group, which is based on the long-term strategy of Latvenergo Group. Capital investments are planned EUR 250 million on average in a year and their implementation is partially financed by own funds and partially by the borrowed capital.         

It is planned within the investment programme to make capital investments in generation assets, in distribution and transmission network assets. At the moment, the main projects implemented by Latvenergo Group include Kurzeme Ring construction project of the transmission system and an extensive programme of distribution network system, as well as Daugava HHPs hydropower unit reconstruction programme. The aim of the projects is to ensure qualitative, safe and reliable service to our clients. In 2013, the amount of investments was EUR 225 million. 

The previous procurement for conclusion of loan agreements with the banks for the total amount up to EUR 150 million (announced in the end of 2013) was terminated due to the decision of the Procurement Monitoring Bureau. The regulations of the newly announced procurement procedure are updated according to the Procurement Monitoring Bureau’s objections to internationally recognized investment grade credit rating as qualification criteria to application submitters.

The selected form of procurement procedure – negotiation procedure with publication of invitation to participate – provides all interested parties (banks) with an equal opportunity to submit their bids by promoting fair competition and giving Latvenergo AS the opportunity to attract bank loans on optimal, mutually acceptable terms of loan agreement to both contracting parties and for the lowest possible price.

The applications for negotiation procedure must be submitted by 26 May 2014.

Additional information:
Jānis Irbe
Group Treasurer
Phone: +371 67 728 239
E-mail: investor.relations@latvenergo.lv

www.latvenergo.lv

About Latvenergo

Latvenergo Group is a pan-Baltic energy company, engaging in electricity and thermal energy generation and supply, electricity distribution services and management of transmission system assets. Latvenergo Group holds one-third of the entire Baltic electricity market, thus ensuring its leadership in the Baltic electricity supply. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several years in a row. International credit rating agency Moody’s has assigned Latvenergo AS an investment-grade credit rating of Baa3/stable.

Latvenergo Group includes the parent company Latvenergo AS (electricity and thermal energy generation and supply) and its subsidiaries Latvijas elektriskie tīkli AS (management of transmission system assets), Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (electricity  supply in Estonia), Elektrum Lietuva UAB (electricity supply in Lithuania), Enerģijas publiskais tirgotājs AS (administration of electricity mandatory procurement process) and Liepājas enerģija SIA (electricity and thermal energy generation and supply), as well as Elektrum Latvija SIA (electricity supply), a subsidiary of Elektrum Eesti OÜ.