Eesti Energia Bond Offering Oversubscribed More Than Ninefold
The public offering of Eesti Energia bonds, which concluded last Friday, attracted total demand of €94.4 million—9.4 times the base offering amount. Estonian retail investors subscribed for bonds worth €71 million, making it the largest senior bond issuance targeted at retail investors in the history of the Baltic States.
According to Marlen Tamm, Chief Financial Officer of Eesti Energia, the record-breaking interest from local retail investors reflects strong trust in the company and a desire to contribute to the long-term success of Estonia’s energy system. Due to the high demand, Eesti Energia exercised its option to increase the offering from the base amount of €10 million to the maximum permitted amount of €50 million. In the allocation process, Eesti Energia prioritized shareholders of Enefit Green.
“I would like to thank all investors for their trust, and I am pleased that former Enefit Green shareholders also participated in the offering. Of the €50 million offering, €29.6 million worth of bonds were allocated to Enefit Green shareholders,” said Tamm. “To reduce energy prices in the long term and ensure energy security, Estonia needs significant additional dispatchable and renewable electricity generation capacity, as well as energy storage. The capital raised from Estonian retail investors will directly support Eesti Energia’s future by enabling investments in new generation and storage capacities, strengthening the distribution network, and thereby enhancing regional energy security.”
The bond offering, with a three-year maturity and a 5% annual interest rate, provided Estonian retail investors with an opportunity to earn stable interest income while supporting the development of Eesti Energia. A total of 4,715 retail investors participated in the offering, subscribing for €71 million worth of bonds. Of this, €37 million was subscribed by investors who were Enefit Green shareholders as of March 28. Approximately 95% of participating investors received the full amount of bonds they subscribed for, while 98.7% of Enefit Green shareholders who participated received their full requested allocation.
Mihkel Torim, Head of Investment Banking at LHV Pank, noted that although the offering was limited to Estonian retail investors, it set several records. “The results of Eesti Energia’s bond issuance highlight the importance of investor confidence in the company and its long-term strategy. This became the largest bond issuance in the Baltics targeted solely at retail investors, and also the most in-demand senior bond offering among retail investors in the region’s history,” Torim stated.
The bonds are scheduled to be credited to investors’ securities accounts on June 4, with the first trading day on the Nasdaq Tallinn Baltic Bond List planned for June 5. The bonds carry a fixed annual interest rate of 5%, with quarterly interest payments on March 4, June 4, September 4, and December 4. The first interest payment will be made on September 4, 2025. On the maturity date (June 4, 2028), Eesti Energia will repay the nominal value of the bonds to bondholders.
The public offering was open to all Estonian retail investors, with Eesti Energia reserving the right to prioritize Enefit Green shareholders who, according to the Estonian securities register, held shares as of the Nasdaq CSD settlement date on March 28, 2025.
The bond offering followed Eesti Energia’s recently announced intention to fully reintegrate the listed company Enefit Green into the group. To this end, a voluntary takeover offer was conducted, amounting to approximately €180 million, through which Eesti Energia acquired a 97.2% stake in Enefit Green. The acquisition of the remaining shares will proceed through a mandatory takeover with monetary compensation.
Eesti Energia is an energy company operating in the Baltic States and Poland. The group is engaged in energy production and sales, liquid fuels production and development, and the provision of convenient and beneficial energy solutions for customers.