Latvenergo to invest EUR 200 million in green energy generation

  • 2022-11-25
  • LETA/TBT Staff

RIGA - In order to invest in green energy generation and promote its use, joint-stock power utility Latvenergo will borrow a total of EUR 200 million from SEB bank and Swedbank Latvija, Latvenergo informed Nasdaq stock exchange.

Latvenergo 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 will be used for the financing and refinancing of Latvenergo Group's sustainable generation projects in the Daugava hydropower plants and the development of solar parks and electromobility services. The repayment term of both loan agreements is up to seven years.

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: 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 neighboring countries in the near future.

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, which include the generation of renewable energy and environmental protection measures.

Latvenergo 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 an investment grade credit rating Baa2, with a stable future outlook, which acknowledges the stability and financial credibility of Latvenergo Group.