EIB backs green bonds of Latvian energy company Latvenergo with €20 million investment

• EIB commits €20 million to Latvenergo’s EU green bond issuance
• Financing to support renewable energy generation, electricity networks, energy storage and clean transport

The European Investment Bank (EIB) has committed €20 million to green bonds issued by Latvenergo, Latvia’s state-owned energy company. The EIB participation supports the most recent bond issuance under Latvenergo’s European Green Bond framework, helping finance investments in renewable energy and sustainable infrastructure in Latvia.

The financing will support projects in renewable energy generation, including onshore wind, battery energy storage systems, hydropower refurbishment and solar photovoltaic installations. That in turn will accelerate Latvia’s transition towards a more sustainable and secure energy system.

With this new investment in a green senior bond in the Baltics, EIB reinforces its commitment to advancing green finance and developing capital markets in the region. Strengthening the resilience of the Baltic energy system and ensuring secure and reliable electricity supply are key priorities for the region.

“We are helping to accelerate the clean energy transition in Latvia and across the Baltics,” said EIB Vice-President Karl Nehammer. “This operation demonstrates how capital markets can mobilise large-scale investment in renewable energy and strengthen Europe’s energy security.”

The EIB commitment is to a €300 million seven-year bond issued under Latvenergo’s Euro Medium Term Note programme and aligned with the European Green Bond Standard, ensuring high transparency and strong environmental credibility.  

"Latvenergo is a sustainable energy company in the region, and our intention is to strengthen this position,” said Guntars Baļčūns, Member of the Management Board and CFO of Latvenergo AS. “Each successfully implemented development step strengthens confidence in the chosen direction. Our more than 25-year partnership with the EIB reflects a shared commitment to advancing the Baltic energy transition, supporting high sustainability standards, and driving our long-term growth strategy."

As an anchor investor, the EIB helps to mobilise additional private capital, diversify the investor base and expand access to sustainable financing. The investment also contributes to the development of the green bond market in the Baltics and supports the scaling up of the European Green Bond Standard.

The operation reflects the EIB’s role as the European Union climate bank, supporting energy security, reducing reliance on fossil fuels and advancing climate neutrality in Latvia and the wider Baltic region.

Background information

EIB Group   

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations. 

Latvenergo

Latvenergo Group is one of the largest providers of energy supply services in the Baltic states, engaged in the generation and trade of electricity and thermal energy, and distribution of electricity. Since 1939, Latvenergo is the largest producer of renewable energy in the Baltics and one of the greenest electricity generators in Europe - approximately half of the electricity is generated in three large hydropower plants. They are complemented by modernized combined heat and power plants, where electricity is obtained from natural gas. The Group develops new green wind and solar energy generation capacities in Baltics and is also a leader in the field of electromobility services. All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.