The European Bank for Reconstruction and Development is investing €20 million in the first green bond issued by Eesti Energia, the state-owned energy company of Estonia. This investment will make up 6.7 per cent of Eesti Energia’s planned €300 million bond issuance, which will be listed on the Luxembourg Stock Exchange’s Euro MTF market
.The funds raised through this green bond will support Eesti Energia’s long-term strategy to shift towards cleaner energy and strengthen regional energy security. The money will be directed to green projects such as renewable electricity generation, upgrades to electricity distribution networks that allow greater integration of renewable power, battery energy storage systems and the expansion of electric vehicle charging infrastructure.
These initiatives will be implemented across the company’s main markets—Estonia, Latvia, Lithuania and Poland.This investment comes at an important moment for the Baltic region. Following the synchronisation of the Baltic electricity system with the continental European network, energy security has become even more critical.
As the region accelerates its energy transition, it needs stronger infrastructure, improved system flexibility and continued investment in renewable energy capacity.Beyond providing capital, the EBRD’s involvement will also support improvements in Eesti Energia’s governance and operational practices.
This includes strengthening cybersecurity standards, adopting more sustainable procurement processes and promoting equality within the energy sector.Grzegorz Zielinski, the EBRD’s Head of Energy Europe, noted that the investment arrives during a period of instability in both energy and capital markets. He stressed that the green bond will not only reinforce energy security but also help advance the move toward low-carbon solutions by expanding renewable energy, improving distribution networks and enhancing energy storage capabilities.
Eesti Energia is one of the largest energy companies in the Baltic region, operating across Estonia, Latvia, Lithuania and Poland. The company is undergoing a significant transition as it works to build a more integrated energy system that brings together renewable generation, energy storage and essential system services.
The EBRD is a long-standing institutional investor in Estonia and the broader Baltic region. To date, it has invested around €1.35 billion in 133 projects across Estonia, demonstrating its continued commitment to supporting sustainable development and energy transformation in the region.
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