SEB bank to issue 130 million EUR in loans to Latvenergo

SEB Latvia will issue long term loans of 130 million EUR to energy company Latvenergo. These funds will be invested in maintaining and developing company's infrastructure as well as financing its investment projects. This is the largest corporate financing deal in Latvia in 2018, and one of the largest deals in the banking industry.

SEB obtained the opportunity to issue this financing by taking part in a tender for attracting financing, organized by Latvenergo. The total amount of the financing attracted to Latvenergo during this process is 240 million EUR. The remaining amount of 110 million EUR will be financed by three other credit institutions.

Latvenergo will invest these funds in projects such as modernization of Daugava river hydroelectric plants and reconstruction of hydroelectric units, implementation of the overhead high voltage power transmission line 'Kurzemes loks' project as well as construction of the third electric power interconnection between Latvia and Estonia.

Guntars Baļčūns, CFO of Latvenergo: "We appreciate SEB bank's trust in us by offering long-term financing and continuing our cooperation, which is mutually beneficial. Advantageous conditions for the financing are an acknowledgement for the previous accomplishments of Latvenergo group and our corporate governance standards. Our strategy outlines growth and efficiency targets, therefore we will continue to invest and develop, to foster the value of Latvenergo group."

Ints Krasts, board member of SEB Latvia: "Latvenergo is one of the greenest energy companies in Europe with high standards of corporate governance and business sustainability. The company has a well-considered strategic investment plan, which will enable to grow business volumes and offer electricity to consumers for competitive and economically justified prices in the long term. Therefore we are glad for this opportunity to provide financing for implementation of this plan, and we are certain that these investments will bring long-term benefits for the company and its clients."

SEB and Latvenergo are long-term partners. In 2015 and 2016 SEB arranged two successful issues of Latvenergo green bonds, attracting from the market funding of 100 million EUR. This issue of bonds was notable as the first time in Eastern Europe when a public corporation issues green bonds. One of the requirements for the green bonds is that funds attracted through green bonds can be only used for 'green' projects, which, for instance facilitate usage of renewable resources, energy efficiency and environmental protection.