Eesti Energia signed a loan agreement to refinance the bond

On February 15, Eesti Energia signed a syndicated loan agreement in the amount of 600 million euros. The purpose of the term loan is to refinance the company's bond and continue with the investments planned in customer solutions, the growth of micro-producers' connection opportunities in the electricity grid, and the development of the carbon-neutral chemical industry.

According to Hando Sutter , Chairman of the Board of Eesti Energia, the loan agreement signed with ten financial institutions shows that despite the energy crisis, financial institutions continue to support Eesti Energia. The financing was structured as a sustainability linked loan and received an „aligned-good“ rating from ISS Corporate Solutions.

"The proceeds from the financing, in addition to refinancing the bond, shall be invested in Eesti Energia's solutions, with which customers can manage their energy use more intelligently and reduce their environmental footprint," said Sutter. The group is also increasing its investments in the electricity grid to enable more micro and small producers of renewable electricity to connect to the electricity grid.

Investments will also be channeled into the carbon-free chemical industry. Enefit technology makes it possible to co-pyrolyze oil shale with waste - old tires and mixed plastic waste treated as non-recyclable. After post-processing, they can be reused again to make materials and objects necessary for everyday life. "The more valuable use of oil shale then has no connection with energy, while in Ida-Virumaa jobs that create high added value for Estonia will be preserved," emphasized Sutter.

According to Eesti Energia's strategy, the group's electricity production will be carbon-free by 2035, and a sustainable carbon-neutral chemical industry based on a circular economy will operate in Ida-Virumaa from 2040. In terms of increasing the production capacity of renewable energy, Enefit Green, the renewable energy company of the Eesti Energia group, aims to increase the production of renewable electricity four times to 4.5 terawatt-hours by 2026. For this purpose, the company listed on the stock exchange raises money separately.

The entire production of Eesti Energia will be carbon-free in 2045.

The loan will refinance a EUR 500 million bond listed on the London Stock Exchange expiring in September 2023. The loan agreement was concluded for five years on the basis of a partial repayment schedule. The Initial Mandated Lead Arranger, Sustainability Coordinator and lead financier of the syndicated loan was Deutsche Bank.

Eesti Energia thanks all the parties who helped prepare and implement the 600 million euro transaction including Ellex Raidla, Clifford Chance, Sorainen, Dentons, TMF Group and ISS Corporate Solutions.

Eesti Energia is an international energy company whose home markets are the Baltic States, Finland and Poland. The group is engaged in both energy production and sales, as well as offering useful and convenient energy solutions to customers. The group's goal is to achieve carbon neutrality in electricity production by 2035 and in the entire group's production by 2045. Outside Estonia, the group operates under the brand name Enefit.