Latvenergo AS will invest EUR 200 million in sustainable energy projects
In order to invest in green energy generation and promote its use, Latvenergo AS 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.
Riga, 2022-11-25 11:16 CET --
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, i.e., solar, wind parks, as well as the promotion of sustainable lifestyle by developing electromobility services. Targeted growth is taking place in the new business directions, as Latvenergo Group is one of the leading solar energy companies in the Baltic countries - both in the solar panel market and also by generating electricity in four solar parks. There is also rapid growth in the electric vehicle charging segment with 159 ports and a plan to expand in neighbouring countries in the near future.
Latvenergo AS has concluded two long-term loan agreements to further strengthen the growth of sustainable energy: at the end of October, for EUR 100 million with SEB bank and at the beginning of November, for EUR 100 million 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. The repayment term of both loan agreements is up to seven years.
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 AS, which include the generation of renewable energy and environmental protection measures.
Ints Krasts, Member of the Board, SEB bank "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. 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."
Jevgenijs Ivanovs, Acting Head of Swedbank Corporate Division, emphasizes: "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. 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."
Latvenergo AS is raising the capital in a planned and regular manner, ensuring timely funding for both capital investments and liquidity management. The credit rating agency Moody's has assigned to Latvenergo AS an investment grade credit rating Baa2, with a stable future outlook, which acknowledges the stability and financial credibility of Latvenergo Group.
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Latvenergo Group is one of the leading energy suppliers in the Baltics operating in electricity and thermal energy generation and trade, natural gas trade and electricity distribution services. Latvenergo AS has been acknowledged as the most valuable company in Latvia for several times. International credit rating agency Moody's has assigned Latvenergo AS an investment-grade credit rating of Baa2/stable.
Latvenergo Group is comprised of the parent company Latvenergo AS (generation and trade of electricity and thermal energy, trade of natural gas) and subsidiaries - Sadales tīkls AS (electricity distribution), Elektrum Eesti OÜ (trade of electricity and natural gas in Estonia), Elektrum Lietuva UAB (trade of electricity and natural gas in Lithuania), Enerģijas publiskais tirgotājs AS (administration of mandatory electricity procurement process), Liepājas enerģija SIA (generation and trade of thermal energy in Liepaja, electricity generation) and Latvijas vēja parki SIA (development of wind parks in Latvia). All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.