Eesti Energia Offers Bonds with a 5% Interest Rate

The Estonian state-owned energy company Eesti Energia is offering bonds with a three-year maturity and a fixed annual interest rate of 5%, available for subscription from May 20 to May 30. This offering provides retail investors with an opportunity to earn stable interest income while supporting the development of Estonia’s electricity system.

According to Marlen Tamm, Chief Financial Officer of Eesti Energia, the capital raised will be used to finance the company’s business operations and advance the energy sector. “In the long term, to lower energy prices and ensure energy security, Estonia needs a substantial increase in both dispatchable and renewable electricity generation capacity, as well as energy storage. The bond offering allows us to strengthen the company’s capital base, which supports the development of additional production and storage capacities, the reinforcement of the distribution network, and thereby the region’s energy security,” said Tamm.

The bonds will pay a fixed annual interest of 5%, with quarterly interest payments scheduled for March 4, June 4, September 4, and December 4. The first interest payment will be made on September 4, 2025. The public offering is open to all Estonian retail investors. In the event of oversubscription, Eesti Energia reserves the right to prioritize former Enefit Green shareholders who were registered in the Estonian securities register as of the settlement date, March 28, 2025.

Eesti Energia is offering 100,000 bonds to the public, each with a nominal value of 100 euros, resulting in a total issue size of 10 million euros. In case of oversubscription, the company may increase the volume of the offering up to 500,000 bonds, raising the total value to 50 million euros. The final issue size will be determined based on investor demand.

The bonds are planned to be listed on the Nasdaq Tallinn Stock Exchange Baltic Bond List, providing investors with additional transparency and the option to trade the bonds if needed. On the maturity date, June 4, 2028, Eesti Energia will repay the nominal value of the bonds to bondholders.

Before making an investment decision, potential investors are strongly encouraged to carefully review the public offering and listing prospectus, available on the company’s website at investor.enefit.com, and to consult a financial advisor if necessary.

This bond offering follows Eesti Energia’s recently announced plan to fully reintegrate the listed company Enefit Green into the group. A voluntary takeover bid was conducted, totaling approximately 180 million euros, through which Eesti Energia acquired a 97.2% stake in Enefit Green. The company is now proceeding with the acquisition of the remaining shares through a cash compensation process.

Eesti Energia is an energy company operating in the Baltic States and Poland. The group is involved in energy production and sales, liquid fuel production and development, and the provision of convenient and beneficial energy solutions for customers.