On 16 May 2013 Latvenergo AS (Baa3/stable, Moody`s) implemented placement of seven-year notes in the total nominal value of EUR 20 million.

The public announcement was made in the Republic of Latvia, in the Republic of Lithuania and in the Republic of Estonia. The yield to maturity range was determined from SW* +1.75% to SW +2.05%. The total amount of the submitted purchase orders had reached EUR 42.14 million, respectively, more than 2 times exceeding the planned issue amount. The purchase orders were received from 25 investors, including pension funds, asset management funds, insurance companies and banks in Latvia, Lithuania and Estonia.

The terms of the issue of the new series of notes are the following:

Serial number of series of notes: 2

Principal amount of the issue: EUR 20,000,000

Amount of the notes: 20,000

Nominal amount of the note: EUR 1,000

Annual interest rate (coupon): fixed, 2.8%

Issue price: EUR 994.475

Final yield to maturity: 2.8883%

Issue date: 22 May 2013

Maturity date: 22 May 2020

ISIN code: LV0000801165

The notes will be listed on Nasdaq OMX Riga AS.

The issue of notes is being implemented under Latvenergo AS LVL 85 million (or its equivalent in EUR) programme for the issuance of notes. The arranger of the issue of notes – SEB banka AS.

The issue of notes is realized within the Latvenergo Group borrowing plans and the net proceeds from the issue of the notes will be used for financing Latvenergo Group`s capital expenditures programme, including but not limited to financing of renewal of transmission and distribution lines, reconstruction of transformer substations, investments in voltage quality improvement, as well as replacement of overhead lines with cable lines to improve the quality and reliability of electricity supply to customers and to reduce the network losses.

* a seven-year interest rate swap

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

www.latvenergo.lv/investors/eng

About Latvenergo

The Latvenergo Group is the largest power supply merchant in the Baltics, engaging in electricity generation and trade as well as providing electricity distribution and management of transmission system assets. Latvenergo holds one-third of the entire Baltic electricity market. 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.

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