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NIB invests in EUR-300m green bond in Lithuania

Author: 401(K) 2012 on Flickr, CC BY-SA 2.0

July 17 (Renewables Now) - Nordic Investment Bank (NIB) said on Thursday it has subscribed for a EUR-300-million (USD 344m) green bond that happens to be Lithuania’s first.

NIB has invested EUR 25 million in the particular issuance under the bank’s EUR-500-million facility earmarked for green bonds issued in member countries.

The green bond was placed by state-owned energy company Lietuvos Energija and arranged by SEB and BNP Paribas. The initial target size of the 10-year bond was EUR 200 million, but it was increased due to strong investor interest. The book building process reached EUR 1.4 billion and the bond lured 120 investors from 25 countries, according to NIB’s announcement.

The energy company intends to use the proceeds from the issuance mainly to back wind, waste and biomass energy production and improved distribution grid efficiency.

Lietuvos Energija’s current portfolio includes a 1,055-MW reserve power plant and a combined cycle unit fired by natural gas, a 900-MW pumped storage hydroelectric facility, a 100-MW hydropower plant and 42 MW of wind farms. The company plans to build two waste-to-energy CHP plants by the end of the decade.

(EUR 1.0 = USD 1.146)

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