Estonian government-owned energy company Eesti Energia successfully raised €400 million ($432.6 million) of green hybrid bonds. The bonds listed on the London Stock Exchange, drew significant interest, being oversubscribed fourfold with bids exceeding €1.6 billion (USD 1.76 billion) from around 200 global investors, with two-thirds of the subscribers coming from Europe, including Estonia.
Marlen Tamm, Member of the Management Board and CFO of Eesti Energia Group said, “We were able to tighten pricing by more than 50bps from during the bookbuild process – we closed the offer at a coupon rate of 7.875%, which is comparable to other similar bond offers both internationally and in Estonia.”
It is the first green hybrid bond issued in the Baltics to be offered internationally and listed on the London Stock Exchange. A green hybrid bond means that the company takes responsibility to investors to invest the capital raised by the bond only in green projects. The hybrid will also benefit from 50% equity content from Moody’s and S&P, whilst being fully equity accounted under IFRS.