Banks, Energy, Estonia, EU – Baltic States, Financial Services, Loan

The aim of the loan is to contribute to the increase of the VKG oil shale industry energy efficiency and environmental sustainability. The work financed with the loan takes place in 2014–2016, the loan amounts to 35 mln euros.

VKG's main financial partners have for years been a consortium of North European banks, which includes SEB, Nordea and Pohjola bank. When the latest consortium loan agreement was concluded in 2013, both banks and VKG saw a good chance of including EBRD in the cooperation.

EBRD estimates that the VKG concern's strength lies in the wholesome oil shale value chain, which in addition to producing fuel oil, includes coproduction of chemicals, energy and construction materials.

VKG is Estonia's biggest oil shale processing company. It has more than 2,100 employees and owns a mine, five oil shale processing factories, transport, montage and energy companies. The 2013 turnover was 220.5 million euros.