The European Bank for Reconstruction and Development (EBRD) is investing €20 million in the first green bond issued by Eesti Energia, the Estonian state-owned energy group, according to a press release. The Bank’s contribution will represent 6.7 per cent of a planned bond issuance of €300 million. The bond will be listed on the Luxembourg Stock Exchange’s Euro MTF market. The funds will finance renewable energy, grid infrastructure and energy storage. The investment will support energy security and decarbonisation across Baltic markets.
The investment comes at a time when the energy security of the Baltic region is of increasing importance, following the Baltic electricity system’s synchronisation with the continental European network. The region’s energy transition requires stronger infrastructure, increased flexibility and continued investment in renewable capacity. Eesti Energia is one of the largest energy groups in the Baltic region, with operations across Estonia, Latvia, Lithuania and Poland. The company plays a central role in the region’s electricity system. It is undergoing a transition towards a more integrated energy platform, combining renewable generation, storage and system services.
The proceeds of the bond will support the company’s long-term energy transition strategy and investments in energy security infrastructure. They will be allocated to eligible green projects, including renewable energy generation and electricity distribution networks that enable the integration of renewables. The funds will also support battery energy storage systems and electric vehicle charging infrastructure. These investments will be implemented across Eesti Energia’s core markets in Estonia, Latvia, Lithuania and Poland. The bond marks the company’s first green issuance.
In addition to supporting the mobilisation of capital, the EBRD’s participation will help to introduce improved governance and operational practices. These include enhanced cybersecurity standards, sustainable procurement and measures to promote equality in the energy sector.
Grzegorz Zielinski, the EBRD’s Head of Energy Europe, said: “At a time of significant energy and capital market vulnerabilities, this investment will help to strengthen energy security while accelerating the shift to low-carbon solutions.” He added that “Eesti Energia’s green bond provides a strong platform to scale up investments in renewable energy, distribution networks and energy storage.”
The statement underscored the strategic relevance of the transaction.
The EBRD is a leading institutional investor in Estonia and the wider Baltic region. To date, the Bank has invested around €1.35 billion in Estonia across 133 projects. The new investment reinforces the EBRD’s continued engagement in supporting the Baltic energy transition. It also aligns with broader efforts to strengthen infrastructure and decarbonisation across the region. The transaction marks a further step in Eesti Energia’s evolution toward an integrated energy platform.
