The European Investment Bank (EIB) has invested €20m in green bonds issued by Latvian state-owned utility Latvenergo, supporting projects including hydropower refurbishment as part of the country’s energy transition.
The investment is part of a €300m seven-year bond issued under Latvenergo’s Euro Medium Term Note programme and aligned with the European Green Bond Standard.
Proceeds will finance renewable energy generation and sustainable infrastructure projects, including onshore wind, battery energy storage systems, hydropower refurbishment and solar photovoltaic installations.
The EIB said the financing would help strengthen Latvia’s energy security and support the resilience of the Baltic electricity system.
“We are helping to accelerate the clean energy transition in Latvia and across the Baltics,” said EIB Vice-President Karl Nehammer. “This operation demonstrates how capital markets can mobilise large-scale investment in renewable energy and strengthen Europe’s energy security.”
The investment is the EIB‘s latest green senior bond investment in the Baltics and forms part of its efforts to expand green finance and develop regional capital markets.
Latvenergo, which has operated hydropower plants since 1939, is the largest renewable energy producer in the Baltics. Approximately half of its electricity generation comes from three large hydropower plants, alongside combined heat and power plants fuelled by natural gas. The company is also expanding its wind and solar generation portfolio across the region.
“Latvenergo is a sustainable energy company in the region, and our intention is to strengthen this position,” said Guntars Baļčūns, Member of the Management Board and CFO of Latvenergo AS. “Each successfully implemented development step strengthens confidence in the chosen direction. Our more than 25-year partnership with the EIB reflects a shared commitment to advancing the Baltic energy transition, supporting high sustainability standards, and driving our long-term growth strategy.”
The EIB said its role as an anchor investor would help attract additional private capital, broaden the investor base and support further development of the green bond market in the Baltics.
