Financial and non financial reports
EPSO-G went public on the capital markets on June 2022 and issued a sustainability-linked bond issue and raised EUR 75 million. This is the first sustainability-linked bond issue in the Baltic States. The five-year bonds with a yield of 3.117% were purchased by institutional investors from Lithuania, Latvia, Estonia and Sweden. The European Bank for Reconstruction and Development (EBRD) purchased almost one third of the issue for EUR 22.5 million.
Moody’s Investors Service has assigned Baa1 credit rating with a stable outlook to EPSO-G. The assigned high investment grade rating reflects the strong financial position of the state-owned group, its relatively low debt level and the fact that the majority of its revenue derives from regulated transmission network activities.
Please read more about this in Moody's report and News release.
Sustainability-linked finance framework
EPSO-G has launched a long-term sustainability-linked finance framework, the first of its kind in the Baltic States. It sets out key performance indicators (KPI) and sustainability performance targets (SPT) that are relevant to the Group. The first of said targets is a 50% reduction in greenhouse gas emissions from the Group’s operations by 2030 compared to 2019 levels. The second target, related to the reliability of the electricity transmission network, is ensuring the lowest possible untransmitted energy rate of 136.25 MWh for the period of 2022–2026.
EPSO-G also commits that the funds raised under the framework will not be used for investments in the expansion or modernisation of the natural gas network.
The sustainability-linked finance framework launched by EPSO-G has been independently assessed by the international climate and environmental research centre “CICERO Shades of Green”. It confirmed that the EPSO-G framework complies with the international principles for sustainability-related bonds and loans. The independent assessment identifies the sustainability objectives of the EPSO-G framework as ambitious compared to the sustainability objectives set by other similar companies operating in Europe. These objectives are also seen as largely in line with the Paris Agreement’s targets for reducing climate change impacts.
Seeking to implement its operational strategy, EPSO-G plans to invest around €1.6 billion between 2022 and 2030. More than half of the investment in transmission infrastructure is expected to come from European Union financial assistance and other grant-like funding, with the remainder coming from own and borrowed funds.
Sustainability-linked finance framework of EPSO-G