EBRD acquires stake in Enefit Green
Published by Bella Weetch,
Editorial Assistant
Energy Global,
The European Bank for Reconstruction and Development (EBRD) has acquired a 1.5% stake in Estonian company, Enefit Green, underpinning the first share offering by a pure-play renewable energy company in the Baltic states.
The EBRD’s investment of €11.8 million corresponds to 6.7% of the company’s €175 million initial public offering (IPO). The shares will be listed on the Tallinn Stock Exchange and included in the NASDAQ Baltics Main List.
Enefit Green is a renewable energy company with a portfolio of wind and solar plants, combined heat and power plants, a pellet plant and a hydroelectric power plant across Estonia, Latvia, Lithuania and Poland.
Following the IPO, Enefit Green will remain majority owned by Estonia’s state-owned energy utility company, Eesti Energia. Eesti Energia's strategy envisages an increase in its production of renewable energy from 36 – 43% by 2023, as well as a cessation of electricity production from oil shale by 2030 and carbon neutrality by 2045. Enefit Green will be a key driver of its parent company’s strategic goals.
The IPO proceeds will be used to develop, construct and operate renewable generation capacity, including greenfield wind and solar farms, in the Baltic states and Poland.
The successful public listing reflects the firm’s strong corporate governance and the country’s implementation of sectoral reforms. It also demonstrates that capital can be raised successfully on local stock exchanges.
The EBRD has been actively involved in the development of capital markets in the three Baltic states and, in 2018, together with the European Commission, sponsored the signing of a Memorandum of Understanding (MoU) between Estonia, Latvia and Lithuania to create a pan-Baltic capital market to strengthen their economies and stimulate investment to create jobs.
The EBRD has been investing in the Baltic states since 1991. To date, its total investment in the region stands at €2.7 billion through almost 300 projects.
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
Energy Global's Summer 2021 issue
The Summer issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including CEWEP, Enel Green Power, Turboden S.p.A., Cornwall Insight, and more.
Read the article online at: https://www.energyglobal.com/special-reports/18102021/ebrd-acquires-stake-in-enefit-green/
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