Skip to main content

Tallinna Vesi added sustainability criteria to its syndicated loan

Written by Customer Service on . Posted in Public Companies.

AS Tallinna Vesi added sustainability criteria to its syndicated loan agreement to support the company’s strategic objectives, with SEB Estonia acting as the sustainability coordinator for the loan.
The syndicated loan agreement of Tallinna Vesi includes sustainability criteria, together with annual targets of the company focusing on the environmental, social and governance (ESG) topics. Following this amendment, approximately 82% of Tallinna Vesi’s total loans will be green and sustainability-related instruments, underlining the strength of the company’s sustainability strategy and providing a solid foundation for future projects.
“The climate situation and its impact on the water system underlines the need for additional measures in the water sector,” said Taavi Gröön, CFO of Tallinna Vesi. “The sustainability-related addition to the 2023 contract perfectly supports Tallinna Vesi’s strategy to be part of the natural water cycle – to provide customers with clean drinking water that they can use with confidence, knowing that this water will be returned to nature in the purest possible form,” Gröön said.
The syndicated loan signed in May 2023 with SEB Pank AS, Swedbank AS and the Estonian branch of OP Corporate Bank plc is supporting Tallinna Vesi’s investments in the water network and water treatment plant, as well as in wastewater collection and wastewater treatment plant. The investments are essential to reduce the environmental impact of water consumption, ensure the continuity of vital services and contribute to sustainable urban development.
The interest margin on the loan will depend on Tallinna Vesi’s achievement of specific sustainability targets related to renewable electricity production, reduced electricity consumption and minimised water losses.
The inclusion of sustainability targets in loan agreements will not bring significant financial implications. The syndicated loan amounts to €91 million, of which €37.5 million was disbursed in 2023.

AS Tallinna Vesi is the largest water utility in Estonia, providing services to more than 24,900 private customers and businesses and 470,000 end consumers in Tallinn and its surrounding municipalities. Tallinna Vesi is listed on the main list of the Nasdaq Tallinn Stock Exchange. The largest shareholdings in the company are held by the City of Tallinn (55.06%) and the energy group Utilitas (20.36%). 24.58% of the company’s shares are freely floating on the Nasdaq Tallinn Stock Exchange.

Taavi Gröön
AS Tallinna Vesi
CFO
(+372) 62 62 200
taavi.groon@tvesi.ee

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.