Estonia's state owned electricity provider today began meetings with investors ahead of a debut Eurobond sale to fund a program to cut emissions from its Soviet-era power plants in line with European Union rules.
Eesti Energia AS plans sell as much as 200 million euros ($198 million) of seven or 10 year bonds, said Heido Vitsur, adviser to the Ministry of Economics. Company officials are meeting investors in Helsinki today before visiting Germany and other European countries next week, said Anne Kallaste, assistant to the chairman of the company's management board.
The Eurobonds, being underwritten by Schroder Salomon Smith Barney, are the first to be issued by an Estonian company since the government entered international capital markets last month, with a sale of 100 million euros of bonds.
The government's five-year bonds, which have the same credit ratings as Eesti Energia's planned bond, recently traded at prices to yield 5.1 percent.
Several years ago, a prominent Indonesian businessman who now resides in Canada, insisted on meeting me in a back room of one of Jakarta's posh restaurants. An avid reader of mine, he 'had something urgent to tell me', after finding out that our paths were going to be crossing in this destroyed and hopelessly polluted Indonesian capital.