Eesti Energia has signed a new €70 million loan agreement with the European Investment Bank (EIB) to support the financing of broadband connections in more than 260,000 households across the country.
The network will provide Very High Capacity (VHC) broadband services with download speeds of 1 Gbps to approximately 266,000 households.
Of these, 47 000 of these households are located in areas with insufficient broadband connectivity, also known as white areas, and about 219,000 in areas with limited broadband service offerings.
The network will be offered on an open-access basis to any retail provider of broadband services. The new broadband network is currently being installed across Estonia and is expected to be finished by 2023.
The EIB's Vice President Thomas Östros commented: "Estonia has already made name for itself as a very digitalised country and we are happy to help push the boundaries of broadband internet access in the country even further. The EIB has an excellent and long-standing partnership with Eesti Energia and we are glad to be able to support them in this venture."
This is the seventh loan agreement to be signed between Eesti Energia and EIB since 2004.
Following the latest agreement signed back in December 2019 for €175 million, the EIB has provided the company with some €600 million in loans since 2004.
The maximum tenor of the debt facility is 14 years, with an availability period of three years.
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States.
It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
Over the last five years, the EIB has made over €922 million available to Estonian projects in – among others – the tech, infrastructure and transport sectors.
Eesti Energia is a state-owned international energy company founded in 1939 that operates in the energy markets of the Baltic Sea countries, and also in the international liquid fuels market.
Editor: Helen Wright