TGS Baltic, working in cooperation with Dentons’ UK and Middle East offices, has advised UAB Lietuvos Energija in approving a medium term note program upsized to EUR 1.5 billion, and issuing a EUR 300 million bond issue under the same program. Banking groups BNP Paribas, J.P. Morgan, and SEB Bank acted as intermediaries for placement of the issue. BNP Paribas and SEB were represented by Ellex Valiunas, while J.P. Morgan was reportedly advised by Clifford Chance.
Lietuvos Energija Group is a state-controlled group of energy companies in the Baltic States. The main activities of the group include power and heat generation, supply, electricity trading and distribution, natural gas trading and distribution, as well as servicing and development of the electricity sector.
The placed bonds were admitted to trading on July 11, 2018 on the Luxembourg Stock Exchange and AB Nasdaq Vilnius. The bonds were placed at a 2.066% yield, and they will bear interest at the rate of 1.875% per annum.
TGS Baltic describes this as "one of the largest transactions of this kind in the Baltic States.”
In its press release, Ellex emphasized that "in Lithuania this is a special case also because for the first time a state-owned company diversifies a debt portfolio by issuing 'green bonds.' Besides, it would be the first bonds emission allotted in foreign markets issued by .... a private company. UAB obtained such a possibility only after the recent amendment to the Law on Companies of the Republic of Lithuania to that effect."
The TGS Baltic team included Partner Vidmantas Drizga, Associate Partners Ieva Dosinaite and Paulius Zapolskis, Senior Associate Mantas Gofmanas, and Associate Augustinas Razumas.
Clifford Chance did not reply to an inquiry on the matter.