Latvia to participate in new initiative to finance infrastructure projects; ALTUM to invest EUR 20 million
Inside information, 2020-05-07 12:33 CEST --
After hearing the Ministry of Economics report “On the involvement of the joint-stock company ‘Development Finance Institution Altum’ in the Three Seas Initiative Investment Fund”, the Cabinet of Ministers at a meeting on 7 May endorsed the involvement of ALTUM in the Three Seas Initiative Investment Fund, which is a new financial instrument to support transport, energy and digitalization infrastructure projects in Central and Eastern Europe.
ALTUM investment in the Three Seas Initiative Investment Fund is projected at EUR 20 million. The investment by ALTUM is yet to be harmonized with the European Commission regarding compliance with the European Union’s rules on business support supervision.
Minister of Economics Jānis Vitenbergs: “The purpose of the Investment Fund is to foster the development of strategic infrastructure in the Three Seas region, thereby increasing interconnectivity. Taking into account the impact of Covid-19 on the Latvian economy, this will be another opportunity to invest in the Latvian economy, which will prompt the development of strategically important infrastructure projects that are essential for ensuring economic growth of our region. We are planning that 40% of the Fund’s investments will go to transport infrastructure, 40% to energy and 20% to digitalization.”
For additional information about the initiative, see: http://three-seas.eu/.
JSC Development Finance Institution Altum is a Latvia state-owned company that ensures access of the enterprises and households to the financial resources by means of support financial instruments - loans, guarantees, investments in venture capital funds - in the areas defined as important and to be supported by the state, thus developing the national economy and enhancing mobilization of the private capital and financial resources. On 25 March 2019 Moody’s Investors Service (Moody’s) reconfirmed Altum’s Baa1 long-term issuer rating, with outlook stable, and it has remained at that level since the baseline credit assessment (BCA) was upgraded to investment grade rating Baa3. The assigned Moody’s rating of Altum is one of the highest credit ratings assigned to corporate entities in Latvia. On 24 October 2017 the bonds issued by Altum were listed on a regulated market – Baltic Bond List of Nasdaq Riga. Altum was the winner of Stock Exchange Event of the Year award in Nasdaq Baltic Awards 2019.
JSC Development Finance Institution Altum Investors Relationships Division
Tel.: +371 67774023, +371 26165699