Eesti Energia concludes oversubscribed bond offering

Published 02/06/2025, 07:56
Eesti Energia concludes oversubscribed bond offering

TALLINN - Eesti Energia AS, the state-owned Estonian energy company, has successfully concluded its public bond offering on Friday, with a significant oversubscription, indicating strong investor confidence. The offering, which was available exclusively in Estonia, attracted a total demand of EUR 94.4 million from 4715 retail investors.

The offering, based on a prospectus approved on May 19, 2025, involved "EUR 5.00 EESTI ENERGIA BOND 25-2028" with a nominal value of EUR 100 each and a fixed annual interest rate of 5%, payable quarterly. The bonds are set to mature on June 4, 2028. Despite an initial base issue volume of EUR 10 million, the ninefold oversubscription prompted the company to exercise its right to increase the offering by up to 400,000 bonds, resulting in a total issue volume of EUR 50 million.

Eesti Energia’s CFO, Marlen Tamm, expressed gratitude to the investors for their trust, emphasizing the record interest from retail investors as a testament to their confidence in the company’s long-term prospects. Mihkel Torim, Head of LHV Bank’s Investment Banking unit, highlighted the offering as the largest retail-only bond issue in the Baltics and the largest ever unsubordinated bond offering in the region with the largest retail investor demand.

The allocation of bonds was determined by two principles: shareholders of Enefit Green AS as of March 28, 2025, were fully allocated subscription orders up to EUR 100,000, with an additional 32.91% allocation for the amount exceeding that. Other investors received full allocation for orders up to EUR 25,000 and the same additional percentage for the excess. Shareholders of Enefit Green AS were allocated EUR 29.6 million in bonds, while other retail investors received EUR 20.4 million.

The bonds are expected to be transferred to investors’ securities accounts around June 4, 2025, with trading anticipated to commence on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange shortly after, around June 5, 2025. This event marks a notable milestone for Eesti Energia and reflects the robust interest in the Estonian energy sector among local investors. The information reported is based on a press release statement.

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