Ignitis Group prices €300m green bond at 4.500% coupon

Ignitis Group successfully priced a €300 million European Green Bond on October 27, 2023, with a 4.500% annual coupon rate, according to a press release. The senior unsecured notes, priced at 115 basis points above the mid-swap rate, were issued at an issue price of 99.676%. The bonds are anticipated to receive Baa1 and BBB+ credit ratings from Moody’s and S&P respectively, aligning with the Group's current ratings.

The order book surpassed €1.0 billion, with over 80 investors participating, resulting in a 3.3 times oversubscription. These bonds attracted participation from institutional investors across Europe and beyond. The issuance is part of the Group's €2 billion Euro Medium Term Note Programme, and the net proceeds will be utilized to refinance existing debt, including the outstanding €300 million 2.000% notes due July 14, 2027.

BNP PARIBAS, Goldman Sachs Bank Europe SE, J.P. Morgan, and MUFG served as Global Coordinators, while SEB, Swedbank, BNP PARIBAS, and J.P. Morgan acted as Joint Bookrunners and Joint Green Coordinators, respectively. The transaction does not impact the company's Adjusted EBITDA and Investments guidance for 2026.