Summary sheet
The operation concerns the EIB's purchase of green bonds issued under the promoter's EU GB Factsheet.
The aim is to finance the promoter's investments to develop a smart, weather-resilient electricity distribution network and facilitate the integration of new renewable energy sources. It also supports EU policies on energy and climate, by enhancing critical infrastructure for decarbonisation. The project is also expected to contribute to the EU's REPowerEU objectives.
The green bonds will finance distribution network investments in Finland, thereby contributing to the EU's climate goals and the REPowerEU initiative. These investments align with both EU-wide and national energy objectives, as outlined in Finland's National Energy and Climate Plan for 2024?2030. Additionally, the project promotes EU Economic, Social, and Territorial Cohesion by targeting EIB Cohesion Priority transition regions.
The project addresses negative climate and environmental externalities and contributes to the provision of public goods such as security of supply. This financing contributes to the Bank's lending priority objectives on energy and is deemed to have very high contribution to the Climate Action (climate change mitigation).
The project's overall economic viability is expected to be fair and above the regulated financial rate of return, which results in good broader social benefits. The promoter's electricity distribution activities are subject to regulatory oversight. Elenia is an experienced operator of electricity distribution networks and has the necessary capacity to manage the implementation of the programme and operate the assets over the term of the loan.
EIB's involvement in the bond process is expected to diversify the promoter green investor base. The project will support Elenia in attracting long term financing from public debt markets for the company's ambitious investment plan related to green energy system.
No significant environmental impacts are expected. Some programme schemes may fall under Annex II of Directive 2014/52/EU, amending the Environmental Impact Assessment (EIA) Directive 2011/92/EU thus requiring a review by the competent authorities at the planning/consent stage with due regard to the necessity for environmental impact assessments.
The Promoter shall ensure that contracts for implementation of the project have been and shall be tendered in accordance with the applicable EU procurement legislation, Directive 2014/25/EU as well as Directive 92/13/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.