“Our loan portfolio is currently more directed towards bank loans yet we see a possibility to raise some money on the capital market for large future projects. Speaking about possible issue of bonds, I may say that we are doing our homework, yet I cannot state that there will be an issue at some point in the near future,” Dalius Misiūnas, CEO of Lietuvos Energija (Lithuanian Energy), told the Verslo Žinios business daily.
Lesto, state-owned power grid operator, also does not rule out a possibility to issue bonds in the future if it were the cheapest way to raise funds.
“In the current market situation, the issue of bonds would be a more expensive way of borrowing compared with the loans provided by banks,” Artūras Paipolas, the director of Lesto’s Finance Department, told the daily.
Meanwhile, financial experts claim that the conditions for the issue of corporate bonds are very favorable since a decline in yield on deposits and government securities prompts the investors to buy riskier securities in pursuit of higher return. For example, Latvia’s state-owned energy company Latvenergo made use of favorable situation on the market and raised around 70 million euros in the capital market at the end of last year and early this year.
