The Port of Tallinn entered into an unsecured loan agreement with SEB Bank for up to €20 million, with a term of five years, to develop Tallinn's Old City Harbor. The base interest rate of the loan is six-month Euribor, plus an interest margin.
The loan can be drawn in two payments, the first of €10 million must be drawn by July 30 at the latest and the second tranche of €10 million by December 31 at the latest. The loan is to be repaid in May 2025.
The loan will mainly be used for investing in the infrastructure of the Old City Harbor, including the construction of a cruise terminal, parking lot, the Admiralty Basin bridge, and the installation of automatic mooring equipment.
The Port of Tallinn has previously announced it will continue with its investments despite the crisis. In the first three months of this year, the company invested a total of €8.8 million, which is more than twice as much as in the same period in 2019.
Last autumn, the Port of Tallinn submitted applications to the city to initiate detailed plans for the Old City Harbor area, which covers the whole area and also handles the construction of up to five-storey residential and commercial buildings and a beach promenade.
Tallinn also initiated a detailed plan for the area by the Admiralty Basin, where the port plans to build a business complex.
Editor: Helen Wright