EIB Supports Latvian Energy Security and Sustainable Infrastructure Through Latvenergo Green Bond Investment

EIB Supports Latvian Energy Security and Sustainable Infrastructure Through Latvenergo Green Bond Investment

(IN BRIEF) The European Investment Bank has committed €20 million to green bonds issued by Latvenergo, Latvia’s state-owned energy company, supporting the company’s latest bond issuance under its European Green Bond framework. The financing will help fund renewable energy and sustainable infrastructure projects, including onshore wind, battery energy storage, hydropower refurbishment and solar photovoltaic installations. The EIB’s investment forms part of a €300 million seven-year bond issued under Latvenergo’s Euro Medium Term Note programme and aligned with the European Green Bond Standard. By acting as an anchor investor, the EIB aims to mobilise additional private capital, diversify the investor base and support the growth of the Baltic green bond market. The investment also reflects the EIB’s wider role in supporting energy security, climate neutrality and reduced dependence on fossil fuels in Latvia and across the Baltic region.

(PRESS RELEASE) LUXEMBOURG, 17-Jun-2026 — /EuropaWire/ — The European Investment Bank has committed €20 million to green bonds issued by Latvenergo, Latvia’s state-owned energy company, in support of renewable energy and sustainable infrastructure investments in the country.

The investment backs Latvenergo’s latest bond issuance under its European Green Bond framework and is intended to help finance projects that strengthen Latvia’s clean energy transition, improve energy security and support the development of sustainable infrastructure.

The financing will support renewable energy generation and related infrastructure, including onshore wind projects, battery energy storage systems, hydropower refurbishment and solar photovoltaic installations. These investments are expected to contribute to a more sustainable, resilient and secure energy system in Latvia and the wider Baltic region.

The EIB’s participation in the Latvenergo green bond issuance also reinforces its role in developing green finance and capital markets in the Baltics. By investing as an anchor participant, the EIB aims to help mobilise additional private capital, broaden the investor base and improve access to sustainable financing for energy transition projects.

Karl Nehammer, Vice-President of the EIB, said the investment will help accelerate the clean energy transition in Latvia and across the Baltic region. He said the transaction demonstrates how capital markets can support large-scale renewable energy investment and strengthen Europe’s energy security.

The EIB commitment forms part of a €300 million seven-year bond issued by Latvenergo under its Euro Medium Term Note programme. The bond is aligned with the European Green Bond Standard, which is intended to provide high transparency and strong environmental credibility for investors.

Guntars Baļčūns, Member of the Management Board and Chief Financial Officer of Latvenergo AS, said Latvenergo is a sustainable energy company in the region and intends to strengthen that position. He said each development step completed by the company reinforces confidence in its chosen direction. Baļčūns added that Latvenergo’s more than 25-year partnership with the EIB reflects shared priorities around the Baltic energy transition, high sustainability standards and the company’s long-term growth strategy.

The investment is also expected to support the further development of the green bond market in the Baltics and help scale up the use of the European Green Bond Standard.

The operation reflects the EIB’s role as the European Union’s climate bank, supporting energy security, reducing dependence on fossil fuels and advancing climate neutrality in Latvia and the broader Baltic region.

EIB Group  

The European Investment Bank (EIB) Group is the financing arm of the European Union, owned by the 27 Member States, and one of the largest multilateral development banks in the world. In 2025, the EIB Group signed €100 billion in new financing and advisory services for over 870 high-impact projects under eight core priorities that support EU policy objectives: climate action and the environment, digitalisation and technological innovation, security and defence, territorial cohesion, agriculture and the bioeconomy, social infrastructure, strong global partnerships and the savings and investments union. Beyond long-term loans for large infrastructure, the EIB Group crowds in private investment for high-risk innovative projects and businesses, with a growing role in Europe’s markets for venture debt, venture capital, guarantees and securitisations.

Latvenergo

Latvenergo Group is one of the largest providers of energy supply services in the Baltic states, engaged in the generation and trade of electricity and thermal energy, and distribution of electricity. Since 1939, Latvenergo is the largest producer of renewable energy in the Baltics and one of the greenest electricity generators in Europe – approximately half of the electricity is generated in three large hydropower plants. They are complemented by modernized combined heat and power plants, where electricity is obtained from natural gas. The Group develops new green wind and solar energy generation capacities in Baltics and is also a leader in the field of electromobility services. All shares of Latvenergo AS are owned by the state and held by the Ministry of Economics of the Republic of Latvia.

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SOURCE: European Investment Bank