Sorainen has advised Lietuvos Energija in establishing a EUR 1 billion Euro Medium Term Note Program and on preparations to issue and distribute the first tranche of up to EUR 200 million. Ellex Valiunas represented BNP Paribas and SEB on the program.
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.
According to Sorainen, "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." In addition, according to the firm, "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."
The Sorainen team included Partners Tomas Kontautas and Saule Dagilyte, Senior Associate Dalia Augaite (who led the project team), Counsels Augustas Klezys and Paulius Koverovas, and Associate Laura Matukaityte.
Editor's Note: After this article was published, Dentons announced that it also advised Lietuvos Energija, UAB on the bond issue, and reported that Clifford Chance worked alongside Ellex in advising the underwriters. According to Dentons, "Lietuvos Energija was initially expected to bring a EUR 200 million green bond to market, however, the deal defied expectations with an oversubscribed book which enabled the issuer to print a EUR 300 million bond from a EUR 1.4 billion book. The bonds were issued under Lietuvos Enegija's EUR 1 billion Euro Medium Term Note (EMTN) Programme, and Dentons also advised the company on the establishment of the EMTN Programme."