Sorainen advised Lietuvos Energija in establishing a EUR 1 billion Euro Medium Term Note Programme and preparing to issue and distribute the first tranche of up to EUR 200 million. The tranche will be primarily listed on the official list of the Luxembourg Stock Exchange and will also be listed on the Debt Securities Trading List of Nasdaq Vilnius.
This is the first time in the Lithuanian market that a state-controlled company is diversifying its debt portfolio by issuing bonds. It is also the first issue in Lithuania of so-called ‘green bonds’ under which the proceeds will be invested in green energy projects. Additionally, Standard & Poor’s has awarded the Lietuvos Energija group a BBB+ rating with stable perspective. This is the highest rating in the Baltic States among companies from the same sector.
Lietuvos Energija group is a state-controlled company group and one of the largest of its kind in the Baltic States. The main activities of Lietuvos Energija group include power and heat distribution and supply, natural gas trade and distribution as well as construction and maintenance of power plants and the grid.
Sorainen advised Lietuvos Energija as issuer in establishing the Programme and is continuing consulting for the issue of the first tranche of the Notes. Sorainen as the local advisor of the issuer advised on establishment of the Programme, bond documentation, corporate authorisation, taxation matters, listing with Nasdaq Vilnius and other Lithuanian law-related matters.
The client was advised by partners Tomas Kontautas and Saulė Dagilytė, senior associate Dalia Augaitė (who led the project team), counsel Augustas Klezys and Paulius Koverovas, and associate Laura Matukaitytė.