Rīgas ūdens raises EUR 40 million in second European Green Bond issuance, completing its EUR 60 million bond programme

On 4 November 2026, Rīgas ūdens SIA successfully issued EUR 40 million in five-year European Green Bonds (EuGB) with a fixed annual coupon rate of 4.839%.

With the new bond issue, the company has completed its EUR 60 million bond programme launched in 2025, once again demonstrating investors' confidence in company's goals and securing financing for the continued renewal and modernisation of Riga's water and wastewater infrastructure in the coming years.

Krišjānis Krūmiņš, Chairman of the Management Board of Rīgas ūdens, commented: "We are a financially stable company with a clear long-term vision and a well-defined investment strategy. These strengths enable us to access the capital markets successfully and secure financing on competitive terms. However, raising financing is not an end in itself - it is a means of modernising Riga's water and wastewater infrastructure in a timely manner, reducing future costs and ensuring reliable services for residents for decades to come."

The company plans to invest the EUR 40 million raised through the new bond issuance in four strategically important areas of infrastructure development. Approximately 55% of the proceeds will be allocated to the rehabilitation of sewer networks, 42% to the completion of the anaerobic digester expansion project at the Daugavgrīva Wastewater Treatment Plant, 2% to energy efficiency improvements and 1% to the modernisation of IT monitoring systems.

These investments will form part of the company's EUR 235 million investment programme for 2025-2028. By mid-2026, a total of EUR 72.6 million had already been invested under the programme, including the EUR 20 million raised through the first European Green Bond issuance in 2025.

Jānis Lange, Executive Director of the City of Riga, commented: "Last year, Rīgas ūdens became the first municipal company in Latvia to raise financing through the capital markets. By successfully completing its EUR 60 million bond programme, the company has reached another significant milestone. This demonstrates that municipal companies can be ambitious, competitive and successful participants in international capital markets. The experience of Rīgas ūdens can also serve as an inspiration to other municipal companies - we must make far greater use of this potential to deliver major development projects and drive Riga's growth."

The bond issuance was arranged by Signet Bank AS, with legal advisory services provided by COBALT. The bonds were offered exclusively to institutional investors, including banks, pension funds, insurance companies and investment fund managers in Baltic and Nordic countries. Rīgas ūdens holds an A3 credit rating with a stable outlook from the international credit rating agency Moody's Ratings.

In 2025, Rīgas ūdens became the first company in Northern Europe to issue bonds in accordance with the new European Green Bond Standard. Its inaugural issuance raised EUR 20 million with a fixed annual coupon rate of 4%, attracting investor demand of EUR 45.5 million, equivalent to 228% of the amount offered. The proceeds from the first issuance have now been fully allocated to eligible green projects. In its independent post-issuance review, Sustainable Fitch confirmed that the allocation of proceeds covered by the review complied with the requirements of the EuGB Regulation and the EU Taxonomy.

The bonds issued in the second tranche also comply with the EuGB Standard, which establishes stringent requirements for the use of proceeds, transparency and independent external review.

The issue date of the new bonds is 11 November 2026, the maturity date is 11 November 2031, and the ISIN is LV0000114072. The bonds are expected to be admitted to trading on the Baltic Bond List of the Nasdaq Riga regulated market.

The Final Terms of the issuance are attached to this announcement.

About SIA "Rīgas ūdens"

Rīgas ūdens SIA is Latvia's largest water utility company, providing water abstraction, treatment and supply, as well as wastewater collection and treatment services in Riga and the surrounding areas. The company's priorities include delivering high-quality services, developing infrastructure and ensuring the sustainable use of resources. Rīgas ūdens SIA is the first municipal company in Latvia to secure financing through the capital market and the first company in Northern Europe to issue bonds in accordance with the European Green Bond Standard (EuGB).

Sandijs Māliņš
Head of Finance department
Phone: +371 29187817
Email: [email protected]