The loan is complemented by a €3 million guarantee issued through the European Union’s “Private Finance for Energy Efficiency (PF4EE)” instrument.
The aim is to optimise the use of renewable energy by SMEs, mid-caps and large enterprises for grid stability, as well as to expand the country’s portfolio of renewable energy which is already huge compared to other EU member countries.
Companies will leverage loans to renovate buildings to make them more energy efficient by installing centralised heating systems, buildings insulation, energy management, and small-scale renewables.
EIB vice-president Thomas Östros said: “When you talk about climate action, there is much to be gained from energy efficiency. Investing in climate-relevant projects is not only about energy generation, or e-mobility, a huge effort is needed to better manage and use the energy that we consume. In line with our commitment to raise the stake of our climate financing to 50% by 2025, we wholeheartedly support this project with our long-time partner ALTUM, which will enable Latvian companies to improve their environmental standing and save on energy bills.”
Reinis Bērziņš, ALTUM management board chairman, stated: “Latvia has huge potential for implementation of sustainable green-minded projects. A survey, conducted by ALTUM, shows that approximately half of Latvian businesses have considered implementing energy-saving activities, but only a few of them have actually taken any practical steps to do so. Currently, the proceeds from ALTUM green bonds are successfully used to finance viable business projects supporting energy efficiency and renewable energy use. In addition to green bond financing, this funding will enable loans to be offered to entrepreneurs and ESCOs with a significantly longer repayment period of up to 15 years. This loan is complemented by an EIB guarantee agreement for loans issued by ALTUM, which lowers interest rates on ALTUM financing for sustainability, energy efficiency and climate change mitigation projects, as well as reducing customers’ security for loans.”
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