Goldman Sachs and LHV assisted with the preparation of the issuance of Eesti Energia’s inaugural EUR 400m Green Hybrid Bond

Ellex law firm in Estonia advised Goldman Sachs Bank Europe SE and LHV Bank on in connection with the issuance of Eesti Energia green hybrid bond.

Eesti Energia raised 400 million euros of green hybrid bonds, listed on the London Stock Exchange to support its business and strengthen its financial position. The funds raised will be invested in ongoing and planned projects supporting the development of green energy.

Investors oversubscribed the offer fourfold at more than 1.6 billion euros. Eesti Energia’s green hybrid bond offer attracted nearly 200 investors from around the world.

It is the first green hybrid bond issued in the Baltics to be offered internationally and listed on the London Stock Exchange. A green hybrid bond means that the company takes responsibility to investors to invest the capital raised by the bond only in green projects. The hybrid will also benefit from 50% equity content from Moody’s and S&P, whilst being fully equity accounted under IFRS.

In order to classify the bond as green, Eesti Energia has prepared a Green Finance Framework, which has been validated by ISS Corporate Solutions, an independent consultancy, who issued a Second Party Opinion on compliance with the green criteria.

Ellex team who advised Goldman Sachs Bank Europe SE and LHV Bank included Partner Gerli Kivisoo and Senior Associate Georg Kuusik, and Counsels Triin Frosch, and Dmitri Rozenblat.