Latvenergo and NIB sign second tranche of long-term loan 

The Latvian energy company AS Latvenergo and the Nordic Investment Bank (NIB) signed a loan agreement today in Helsinki.

The loan, with a maturity of 15 years and a grace period of 7 years, amounts to USD 57 million and is intended for Latvenergo’s extensive investment programme to improve efficiency and competitiveness.

Together with the first tranche of the loan in the amount of USD 36.5 million agreed upon in May 2002, Latvenergo has now raised a total of USD 93.5 million in long-term loans from NIB. The energy company is a major borrower of NIB in the region.

Latvenergo is continuing an extensive investment programme. For the next 10-year period annual investments are estimated at EUR 120-150 million. The investments have a particular emphasis on energy efficiency as well as increased reliability in the Daugava Hydro Power Plant and in electricity distribution. At present Latvenergo also carries out a major investment for the reconstruction of one of the company’s combined heat and power plant in Riga.

The agreement of today was signed by Mr Karlis Mikelsons, Chairman of the Board of Latvenergo, Mr Olafs Vitols, Member of the Board of Latvenergo and Mr Erkki Karmila, Executive Vice President of NIB.

Latvenergo is an energy company engaged in the production of electricity and heat, the transmission and distribution of electricity and the sale of electricity. Latvenergo is one of the largest companies in Latvia and the Baltic countries.