NOT FOR PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, TO PERSONS LOCATED IN THE UNITED STATES (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) OR TO ENTITIES IN CANADA, AUSTRALIA OR JAPAN OR ANY OTHER JURISDICTION WHICH PROHIBITS THE SAME EXCEPT IN COMPLIANCE WITH APPLICABLE LAW.
Eesti Energia AS yesterday successfully priced a EUR 300 million five-year senior green bond offering (the "Notes"), marking a strong return to the international debt capital markets following its last capital markets transaction, a hybrid issuance completed in 2024, also in green format. The transaction comes post the group's recent reorganisation, finalised last year, which saw Eesti Energia re-integrate Enefit Green, resulting in a consolidated company improving its synergies potential and contributing positively to its credit profile.
The Notes were offered and sold to non-U.S. persons outside the United States as defined in, and in reliance on, Regulation S under the U.S. Securities Act of 1933, will settle on 28 May 2026 and mature on 28 May 2031. The bonds carry a fixed coupon of 4.600%, equivalent to a spread of MS+170bps. The Notes are expected to be rated Baa3 by Moody's and BBB- by Fitch, in line with the issuer's ratings, and will be listed on the Euro MTF Market of the Luxembourg Stock Exchange. An amount equivalent to the net proceeds will be allocated to finance and/or refinance certain new or existing eligible green projects in accordance with the issuer's Green Financing Framework published in April 2026.
Marlen Tamm, CFO of Eesti Energia, said the following about the transaction: "We are delighted with the outstanding reception of our return to the senior bond market, which follows the successful reorganisation of the group and the recent move to a stable outlook by Moody's. The outcome is a strong endorsement of Eesti Energia's credit story. We are particularly pleased to have meaningfully broadened our international investor base, and we thank all of our partners and investors for their trust."
The transaction was launched in the morning with initial price thoughts ("IPTs") of MS+200bps area, before being tightened to MS+175bps area on the back of strong investor traction, and ultimately priced at MS+170bps - representing 30bps of compression from IPTs. Demand peaked at approximately EUR 1.9 billion, reflecting an oversubscription ratio of around 6.3x on the EUR 300 million print, and underlining the quality of the credit story presented to investors.
Notably, this transaction meaningfully broadened Eesti Energia's investor base, with approximately 150 accounts participating in the final orderbook. The broad distribution underscores the renewed confidence of the international fixed income community in Eesti Energia's strategic direction, its green transition agenda, new revenue streams, and amended investments programme.
Goldman Sachs Bank Europe SE acted as Global Coordinator on the transaction, with AS LHV Pank acting as a Joint Lead Manager.
This press release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or any jurisdiction in which such offer or solicitation or sale would be unlawful. Securities may not be offered or sold within the United States or to U.S. persons absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, and the rules and regulations thereunder.
