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HomeFinanceIgnitis Group concludes 220 mln euros financing agreement for it biomass unit

Ignitis Group concludes 220 mln euros financing agreement for it biomass unit

Lithuania-based energy company Ignitis Group and its subsidiary Vilniaus Kogeneracinė Jėgainė (Vilnius CHP) concluded an agreement for a 220 million euros loan with Swedbank. The funds will be used for finishing the construction of the biomass unit and refinancing the long-term loan of Vilnius CHP. The Group and Swedbank have also agreed upon a credit line of 80 million euros.

Eighty-five million euros of the loan from Swedbank will be used for finishing the construction work of the Vilnius CHP biomass unit. The remaining 135 million euros will be used for re-financing the loan granted to Vilnius CHP by the European Investment Bank (EIB), which the Group is now taking over.

“We are pleased to continue to build trust with Swedbank, who remains one of the most reliable partners and who contributed last year to overcome the energy crisis. By providing us with a credit line of 300 million euros, it will help us finance one of our biggest projects. This is a result of a long and consistent cooperation and positive partnership between our team and Swedbank,” said Ignitis Group CFO Jonas Rimavičius.

“We appreciate our long-term cooperation with Ignitis Group. We believe that the financial means will help the Group successfully finish its ambitious projects, which will help fulfil national objectives of energy network’s resilience and cutting down emissions,” added Swedbank Lithuania CEO Inga Skisaker.

Vilnius CHP will be one of the most modern combined heat and power plants in Europe. The plant’s overall electric power is estimated to reach 93 megawatts (MW) once the project is finalized, while the heat energy is estimated to reach 239 MW.

A waste-to-energy unit has been operating in Vilnius CHP since March 2021 and once the biomass unit construction is complete, energy will be generated from biomass as well. The plant converts an approximated 160,000 tonnes of waste into energy every year, while the biomass unit will use an estimated 500,000 tonnes of biomass.

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