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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 16:44

Latvenergo power utility signs EUR 100 mln agreement with NIB

BC, Riga, 16.12.2019.Print version
Nordic Investment Bank (NIB) and Latvian power utility Latvenergo have concluded a 15-year loan agreement of EUR 100 mln to finance Latvenergo Group’s investments in electricity distribution network, BC was told at NIB.

The investment program aims to increase the security of the power supply and improve the quality of service through distribution network renewal and digitalization.

The projects include changing the overhead lines to underground cables, replacing the old transformer points, rolling-out smart meters and other enhancements.


“Investing in a sustainable electricity distribution infrastructure is vital for the competitiveness and growth of the Latvian economy. Efficiency improvements will benefit the Group in financial savings, and result in better services for customers”, says Henrik Normann, NIB President and CEO.


The upgraded distribution network will allow saving up to 3.3 GWh of energy a year. Moreover, the installation of smart meters will increase the share of connected users from 49% to 95%. 


Latvenergo power company posted EUR 435.199 mln in audited turnover for 2018, down 12.7% from 2017, while the company’s profit increased 41 percent to EUR 212.733 mln, according to the company’s statement to the Nasdaq Riga stock exchange. The group’s revenue amounted to EUR 878 mln, which is 5% less than in 2017. The group’s profit for 2018 amounted to EUR 76 mln.


Latvenergo is a state owned power utility engaged in electricity and heat generation and trade and natural gas trade. The electricity distribution is operated by its subsidiary Sadales Tikls. 


NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.






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