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Latvijas Gaze raises EUR 35 mln loan for Gaso capital

BC, Riga, 26.10.2017.Print version
Latvijas Gaze natural gas utility has raised a EUR 35 million loan from SEB Banka to create an optimal capital structure for the would-be gas distribution system operator Gaso and refinance the investments made in previous years in the distribution system, Latvijas Gaze said in a statement to Nasdaq Riga stock exchange, cites LETA.

The five-year loan will be attributed to the newly established subsidiary Gaso.

 

As reported, Latvijas Gaze shareholders decided at a meeting in August to demerge the company by establishing a distribution system operator - joint stock company Gaso.

 

According to the European Union directives and the Energy Law, Latvijas Gaze has to separate natural gas distribution and transmission systems by January 1, 2018. The natural gas transmission and storage functions were separated from Latvijas Gaze by the establishment of Conexus Baltic Grid in 2016, a company that is independent from Latvijas Gaze. On the other hand, natural gas distribution operator may be a subsidiary of Latvijas Gaze.

 

Latvijas Gaze's share capital is EUR 55,860,000, divided into 39,900,000 shares, each worth EUR 1.4. Latvijas Gaze shareholders are Gazprom (34% of shares), Marguarite Gas II (28.97%), Uniper Ruhrgas International (18.26%), Itera Latvija (16%), the state of Latvia (less than 0.01% of shares), and others.

 

Last year Latvijas Gaze generated EUR 392.266 million in sales, down 11.8% from 2015, and its profit rose 22.9% to EUR 37.506 million.

 

Latvijas Gaze shares are quoted on the Secondary List of the Nasdaq Riga stock exchange.






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