Eesti Energia wins ESG Loan Deal of the Year award at prestigious international conference

Eesti Energia's 600 million euro Sustainability-linked Syndicated Facility issued in February was named the most sustainable loan of the year in the region's largest and most prestigious investment-themed conference.

The Global Finance and Credit Media Group Bonds & Loans Awards recognise the most innovative and ground-breaking deals from Sovereign, Corporate and Financial Institution issuers and borrowers.

According to Danel Freiberg , Head of Treasury and Financial Risk Management at Eesti Energia, the high-level recognition showed that banks and funds recognise Eesti Energia's responsibility for the environment and society.

‘Our aim is to be a pioneer of the green pathway movement. This international recognition shows that the big players in the financial sector consider our strategy ambitious but realistic,’ said Freiberg. ‘We would like to thank once again all the parties who helped to prepare and implement the transaction.’

On 15 February 2023, Eesti Energia signed a 600 million euro syndicated loan agreement. The signed loan agreement is linked to the fulfilment of ESG or responsibility and sustainability criteria. The loan was used to refinance the company's bond and to continue investing in customer solutions to help customers manage their energy use more wisely and reduce their environmental footprint. The loan will also finance the growth of power grid connections for micro-producers and the development of a chemical industry based on circular economy.

The preparation and execution of the loan transaction was aided by Ellex Raidla, Clifford Chance, Sorainen, Dentons and ISS Corporate Solutions, TMF Group. Ten financial institutions participated in the syndication and Deutsche Bank was the lead financier.

Eesti Energia's strategy is to make the group's electricity production carbon-free and to move towards a sustainable chemical industry based on a circular economy in Ida-Viru County that upcycles carbon. In order to increase its renewable energy production capacity, the renewable energy company Enefit Green, part of the Eesti Energia group, has set a target to increase its renewable electricity production fourfold to 4.5 terawatt-hours by 2026. To do this, the listed company raises money separately. By 2045, all of Eesti Energia's production will be carbon-free.

The GFC Media Group Bonds, Loans & ESG Capital Markets CEE, CIS & Türkiye Awards is the region's largest and most prestigious investment conference, recognising the most innovative and ground-breaking deals of the year from government, corporate and financial institutions alike. The thorough selection process involves examination of deal size, tenor, structure, and distribution as well as background analysis of the borrower. Extra credit is given to deals demonstrating high quality execution, accessing new pools of liquidity, innovative structuring, and opening-up new markets.

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