Estonia: Eesti Energia signs financing agreement with EIB
- Dec 19, 2019
Eesti Energia has signed a EUR 175 million loan agreement with EIB to finance investments into its distribution network. Maximum tenor of the debt facility is 20 years.
- EUR 175 million loan from EIB for investments into electricity distribution network.
- Financing will support refurbishment of existing power lines and construction of new ones, as well as smart meters, public lighting and e-vehicle charging stations.
Eesti Energia has signed a EUR 175 million loan agreement with European Investment Bank (EIB) to finance investments into its distribution network. Maximum tenor of the debt facility is 20 years.
The European Investment Bank shares a long history with Eesti Energia, having provided the company with over EUR 500 million in loans since 2004. The facility regards investment activities to extend and refurbish the electricity distribution networks in Estonia during the period 2019-2023 and includes investments in public lighting and charging stations for electric vehicles to take place in the same period.
The EIB’s Vice President Alexander Stubb commented: “Demand for electricity is going up all around the planet, which puts a heavy burden on the network. We’re very happy to continue our collaboration with Eesti Energia, with whom we’ve been working ever since 2004, to support employment and energy security in Estonia.”
At completion, some 4.100 km of the distribution network will be refurbished, with another 1.100 km newly constructed.
Eesti Energia is a state-owned international energy company founded in 1939 that operates in the energy markets of the Baltic Sea countries, and also in the international liquid fuels market. Eesti Energia’s activities include operating the distribution grid, developing and operating renewable energy generation assets in the Baltic Sea area, offering energy solutions that include electricity, heat and fuel production, sales and customer service and other energy services.