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EIB's EUR 70 mln loan for Eesti Energia meant for Elektrilevi's last mile project

BC, Tallinn, 04.06.2020.Print version
The loan of 70 mln euros issued by the European Investment Bank (EIB) to Estonia's state-owned energy group Eesti Energia is meant to finance the last mile broadband connections project of Eesti Energia's power distribution subsidiary Elektrilevi, executives said LETA/BNS.

Elektrilevi board member Priit Treial told Postimees that the objective of the loan is not to speed up the project, but to finance it on sensible and favorable terms. 


Treial said that the project launched in 2019 was advancing in accordance with plans and new broadband access networks were constantly being built.


"As at the end of May, it was possible for over 10,600 addresses to join Elektrilevi's high-speed internet and more addresses are being added constantly," he said.


Eesti Energia announced on Wednesday that it has signed a new loan agreement with EIB in the amount of 70 mln euros to finance investment into the roll-out of a passive fiber access network in Estonia. Maximum tenor of the debt facility is 14 years, availability period of the loan is three years. The loan will be disbursed on a needs basis during the availability period by Eesti Energia.

The network will provide Very High Capacity (VHC) broadband services with download speeds of 1 Gbps to about 266,000 households.


The network will provide Very High Capacity (VHC) broadband services with download speeds of 1 Gbps to about 266,000 households.


A total of 47,000 of these households are located in areas with insufficient broadband connectivity and about 219,000 in areas with limited broadband service offerings. The network will be offered on an open-access basis to any retail provider of broadband services. The new broadband network is currently being installed across Estonia and is expected to be finished by 2023.






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