Friday, January 27, 2023

HomeFinanceLatvenergo: 200 million euros to scale up sustainable energy projects

Latvenergo: 200 million euros to scale up sustainable energy projects

In order to invest in green energy generation and promote its use, Latvia’s electric utility company Latvenergo has concluded long-term loan agreements with SEB bank and Swedbank Latvija. The loans are planned to be used for the financing and refinancing of the Group’s sustainable generation projects in the Daugava hydropower plants and the development of solar parks and electromobility services.

Latvenergo Group’s growth strategy is focused on the development of sustainable energy, also promoting the achievement of climate neutrality goals. The ambitions of the Group include the development of new renewable energy capacities, including solar, wind parks, as well as the promotion of a sustainable lifestyle by developing electromobility services.

Thus, Latvenergo has concluded two long-term loan agreements to further strengthen the growth of sustainable energy: at the end of October, for 100 million euros with SEB bank and at the beginning of November, for additional 100 million euros with Swedbank Latvija. The loans are planned to be used for the financing and refinancing of green investments of Latvenergo Group: investments in hydropower plants, investments in the development and maintenance of solar energy parks, as well as investments in the development of e-mobility in the Baltics.

“SEB bank and Latvenergo have established a long-term cooperation, both funding investment projects and providing loans for the maintenance and development of the company’s infrastructure,” said Ints Krasts, Member of the Board, SEB bank. “At a time when the topic of energy independence has gained momentum, we are pleased to support economically justified investments for the development of sustainable projects, including the transition to alternative energy sources.”

“The role of large companies is decisive in the transformation process towards sustainable change. Latvenergo, as a market leader throughout the Baltics, with its investments in the field of green energy, not only sets an example for other companies but also promotes a greater understanding of the general public,” added Jevgenijs Ivanovs, Acting Head of Swedbank Corporate Division. “In addition, Swedbank’s experience shows that this year the interest of the bank’s customers has grown not only to install solar panels and take care of their energy independence but also to think more about e-mobility by purchasing electric vehicles for their daily needs. Therefore, as a sustainable bank, we particularly support investments aimed at promoting green energy.”

These agreements supplement the funds obtained from the issue of green bonds at the beginning of the year, which are also invested in the sustainability projects of Latvenergo, which include the generation of renewable energy and environmental protection measures.

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