Enefit Green signed agreements with SEB and Nordic Investment Bank to raise debt financing
On 6 January 2023, Enefit Green signed agreements in the amount of EUR 325 million with SEB and Nordic Investment Bank (NIB) to finance its ongoing investment programme.
The amount of the loan agreement signed with the Nordic Investment Bank is 100 million euros and the loan period is 12 years. The total volume of agreements concluded with SEB is up to 225 million euros and the agreed financing period is seven years.
Enefit Green will use this debt financing round for the construction of Sopi-Tootsi, Kelme I and Tolpanvaara wind farms in Estonia, Lithuania and Finland, as well as for the construction of the Purtse solar farm in Estonia.
According to Enefit Green board member and CFO Veiko Räim, the company is very happy to further strengthen cooperation with important financial partners SEB and Nordic Investment Bank. "Enefit Green is in an active growth phase to quadruple its production portfolio by 2026. We are investing an estimated 1.5 billion euros to bring large quantities of cheap renewable energy to Estonia and neighboring countries. In implementing the growth plan, we rely on the money raised from investors, cash flow from business operations, and loan financing. The new loan financing is an important part of the financing of the ongoing investment program," commented Räim.
“I am very pleased that SEB can support Enefit Green with a significant amount to increase its renewables power generation” says Anders Larsson, Head of Corporate Banking in the Baltic Division of SEB. “In power generation there are two strong trends; the transition from fossil-based fuels to renewables and the need for energy independence. Russia’s war on Ukraine has significantly strengthened these trends. In November 2021 SEB went public with targets to reduce our fossil fuel credit exposure with 45-60% by 2030 and at the same time increase the sustainability activity index 6-8 times. The green loans provided to Enefit Green are one of the products in our sustainability activity index. SEB is a founding member of the United Nations Net-Zero Banking Alliance and in November 2022 specific emission targets for certain industries were published. In 2030 the Scope 1 & 2 emissions from power generation clients that SEB provides financing to, should reduce from the 2020 baseline average of 120 grams CO2/kWh to 70 grams. By providing 225 MEUR of green loans in financing to Enefit Green I am very happy that we can provide a meaningful financing amount supporting the green transition, increase energy independence and at the same time support our own sustainability targets” says Anders Larsson.
Enefit Green's cooperation with the Nordic Investment Bank began in January 2022, when a loan agreement was signed for the financing of wind farm projects in Estonia and Lithuania for the first time.
"With the second loan granted for the construction of renewable power plants in three member states, Nordic Investment Bank confirms its continued trust in Enefit Green and recognizes the company's long-term strategic investments in renewable energy production capacity," said André Küüsvek, president and CEO of Nordic Investment Bank.
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